Morgan Hill City Council
December 17, 2025

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3. Conflicts. In the event of a conflict between the terms and provisions of this First Amendment to Agreement and the terms and provisions of the SERVICE AGREEMENT, the terms of this First Amendment to Agreement shall govern and control.

4. Counterpart Signatures. This Agreement may be signed in multiple counterparts, which shall, when executed by all the Parties, constitute a single binding agreement.

TWO SIGNATURES ARE REQUIRED FOR CORPORATIONS:
(1) CHAIRPERSON OF THE BOARD, PRESIDENT, OR VICE PRESIDENT; AND (2) SECRETARY, ASSISTANT SECRETARY, CHIEF FINANCIAL OFFICER OR ASSISTANT TREASURER.

Date: 1/13/2025
APPROVED AS TO FORM:
r-;
Donald Larkin, City Attorney
DocuSigned by:

L!Z���E�i�
Date: 12/19/2024
2 CITY OF MORGAN HILL
lvisn!AA tW'W,,V' �;iifllla=sf�er, '""'"""" City Manager Date: 1;11;202 s
SOLUTIONZ, INC.
� DocuSigned by:
�bJ:t:cE����
Title: President
Print Name and Title of Signer.

If Corporate: Chairman, President or
Vice President
Date: 12/18/2024
By:

Title:

Date:

Print Name and Title of Signer.

If Corporate: Secretary, Assistant
Secretary, Chief Financial Officer or
Assistant Treasurer

Docusign Envelope ID: 3471 BBF8-DB6B-4B36-9871-28B8F112B689 EXHIBIT 1

SERVICE AGREEMENT
SOLUTIONZ, INC.
4/29/2024 THIS AGREEMENT is entered into and becomes effective on _______ (Effective Date), by and between the CITY OF MORGAN HILL, a municipal corporation, ("CITY"), and Solutionz, Inc. a California corporation ("SERVICE PROVIDER") hereinafter referred to collectively as "Parties." In consideration of the promises and the mutual covenants contained in this Agreement, the Parties agree as follows:

1. City Authority. This Agreement is entered into pursuant to the action of the Morgan Hill City Council taken on April
, �. 20�.

2. Term of Agreement. This Agreement shall cover services rendered from the Effective Date of this Agreement until December 31, 2024, at which time SERVICE PROVIDER'S services shall be completed. The City Manager is authorized to extend the term of this Agreement for a maximum period of one year. Any such extension shall be in writing and signed by both Parties to this Agreement.

3. ,Scope of Service. The services to be performed by SERVICE PROVIDER shall be council chamber audio visual replacement and upgrades as further described in Exhibit A.

4. Compensation. SERVICE PROVIDER shall be compensated as follows:

4.1. Amount. $465,102.56. Total compensation to SERVICE PROVIDER under this Agreement during its initial term set forth in Section 2 above shall not exceed four hundred sixty-five thousand one hundred two dollars and fifty-six cents and shall be billed based on the rate and basis set forth in Exhibit B. If the City Manager extends the term of this Agreement for up to one year pursuant to the provisions of Section 2 above, the City Manager shall have the authority to increase the maximum compensation allowed to be paid to SERVICE PROVIDER during that extended term period, so long as City Council has appropriated sufficient funds therefor, the Parties mutually agree to such amount in a writing signed by both Parties to this Agreement and provided further that in no event shall such maximum compensation allowed for the extended term exceed 105% of the maximum compensation allowed to be paid to SERVICE PROVIDER for one year of service during the initial term of this Agreement.

4.2. _Billing. SERVICE PROVIDER shall provide CITY with an invoice containing the dated, detailed, and itemized descriptions of all services performed and expenses incurred (if such expenses are reimbursable pursuant to Exhibit B) by SERVICE PROVIDER on a monthly basis unless otherwise specified in Exhibit B. All invoices shall be sent to the CITY addressed to the department head or project manager identified below in Section 14 Notices. Payment will be made to SERVICE PROVIDER within thirty (30) days of receipt of invoice by CITY. Any rate charged shall be prorated where services are interrupted or not provided for any rate period (for example, any monthly rate charge should be prorated when services were interrupted or provided for only part of the month). For services billed at an hourly rate, the minimum unit of billed time shall not exceed one tenth of one hour. CITY shall pay for services and expenses (if so, provided in Exhibit B) up to the limit of compensation set forth above, that in the CITY'S judgment were necessary and reasonable. Services for work performed and expenses incurred in excess of the total compensation set forth in paragraph 4.1 above shall be at no cost to CITY.
1 Updated: April 2024

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5. Termination. CITY or SERVICE PROVIDER shall have the right to terminate this Agreement, without cause, by giving thirty (30) days' written notice or less under urgent circumstances. Upon such termination, SERVICE PROVIDER shall submit to CITY an itemized statement of services performed for which compensation has not been paid. CITY may require SERVICE PROVIDER to complete certain work product or documents and SERVICE PROVIDER shall deliver to CITY all documents in its possession without additional compensation to SERVICE PROVIDER. The City Manager is authorized to terminate this Agreement, in whole or in part, on behalf of CITY. In the event that City opts to exercise its right to terminate for convenience, Solutionz will use its best efforts to cancel all equipment orders and return materials received but not yet incorporated into the work to manufacturer; however, in the event that these materials are not subject to cancellation or return, City agrees to take delivery of and pay for same, and to pay all reasonable costs of demobilization, including return freight and manufacturer-imposed restocking fees, if any.

5.1. Non-Appropriations. Notwithstanding anything contained in this Agreement to the contrary, if insufficient funds are appropriated, or funds are otherwise unavailable in the budget for CITY for any reason whatsoever in any fiscal year, for payments due under this Agreement, CITY will immediately notify SERVICE PROVIDER of such occurrence, and this Agreement shall terminate after the last day during the fiscal year for which appropriations shall have been budgeted for CITY or are otherwise available for payments.

6. Performance of Work. SERVICE PROVIDER represents that it is qualified by virtue of experience, training, education, and expertise to accomplish these services. Services shall be performed by SERVICE PROVIDER in accordance with professional practices in a manner consistent with a level of care, competence and skill exercised by qualified members of SERVICE PROVIDER'S profession. By delivery of completed work, SERVICE PROVIDER certifies that the work conforms to the requirements of this Agreement and all applicable federal, state, and local laws. SERVICE PROVIDER is liable for any property damage caused by SERVICE PROVIDER or its Subcontractors during performance of the services and shall notify the CITY of damage within 24 hours of the occurrence. SERVICE PROVIDER must promptly repair or replace any real or personal property damage and must promptly restore the property to its original or intended condition. CITY may repair or replace the real or personal property damage if SERVICE PROVIDER fails to do so, and the cost of the repairs or replacement may be deducted or offset from any compensation due to SERVICE PROVIDER.

6.1. Schedule. SERVICE PROVIDER shall perform all work and services under this Agreement in conformance with the time schedule set forth on Exhibit C, "Schedule of Performance," attached hereto and incorporated herein by this reference. The City Manager is authorized on behalf of CITY to modify the timeframes set forth on the Schedule of Performance and Paragraph 19.1 Force Majeure within the term of this Agreement.

6.2. .Bond. SERVICE PROVIDER shall provide a performance bond in the amount of the contract.

6.3. Storage of Service Provider's Equipment. If SERVICE PROVIDER desires to leave or store any of SERVICE PROVIDER'S equipment at a CITY site while SERVICE PROVIDER is performing work or service pursuant to this Agreement, SERVICE PROVIDER will first obtain the consent of the City Manager, or his/her delegate, to do so, and any such storage shall occur only in the manner and location allowed by such CITY official and entirely at SERVICE PROVIDER'S sole risk. 2 Updated: April 2024

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7. Hazardous Materials. Without limiting any other requirement or obligation of SERVICE PROVIDER under this Agreement, if SERVICE PROVIDER needs to use any material or chemical considered to be a hazardous material under any federal, state, or local law, regulation or policy, SERVICE PROVIDER agrees to fully and timely abide by and comply with all laws, regulations and policies pertaining to the use, transport, removal, handling, disposal, or other activity related to any and all such materials or chemicals. Prior to commencement of work or services under this Agreement, SERVICE PROVIDER shall provide CITY with a complete list of the hazardous materials SERVICE PROVIDER reasonably anticipates it may need to use to provide the services of SERVICE PROVIDER under this Agreement, together with the reasonably anticipated quantities thereof, if requested by CITY.

8. Insurance Requirements. SERVICE PROVIDER shall procure and provide proof of the insurance coverage required by this section in the form of certificates and endorsements. The required insurance must cover the activities of SERVICE PROVIDER, including its subcontractors, employees, and agents, relating to, or arising from the performance of any work or service under this Agreement, and must remain in full force and effect at all times during the period covered by this Agreement. The coverages may be arranged under a single policy for the full limits required or by a combination of underlying policies with the balance provided by excess or "umbrella" policies, provided each such policy complies with the requirements set forth herein. Any deductibles or self-insured retentions must be declared to and approved by City. SERVICE PROVIDER further understands that CITY reserves the right to modify the insurance requirements set forth herein, with thirty (30) days' notice provided to SERVICE PROVIDER, at any time as deemed necessary to protect the interests of CITY.

8.1. Insurance Types and Amounts.

8.1.1. Commercial General Liability (CGL). SERVICE PROVIDER shall maintain CGL against claims and liabilities for personal injury, death, or property damage providing protection in the minimum amount of: (i) one million dollars ($1,000,000.00) combined single limit for any one accident or occurrence, or (ii) the maximum amount of such insurance available to SERVICE PROVIDER under SERVICE PROVIDER'S combined insurance policies (including any excess or "umbrella" policies), whichever is greater.

8.1.2. Automobile Liability. SERVICE PROVIDER shall maintain Automobile Liability covering all owned, non-owned and hired automobiles (if SERVICE PROVIDER does not own automobiles, then SERVICE PROVIDER shall maintain Hired/Nonowned Automobile Liability) against claims and liabilities for personal injury, death, or property damage providing protection in the minimum amount of: (i) one million dollars ($1,000,000.00) combined single limit for any one accident or occurrence, or (ii) the maximum amount of such insurance available to SERVICE PROVIDER under SERVICE PROVIDER'S combined insurance policies (including any excess or "umbrella" policies), whichever is greater.

8.1.3. Workers' Compensation Insurance and Employer's Liability. SERVICE PROVIDER shall maintain Workers Compensation coverage, as required by law, in the minimum amount of: (i) one million dollars ($1,000,000.00) for any one accident or occurrence, or (ii) the maximum amount of such insurance available to SERVICE PROVIDER under SERVICE PROVIDER'S combined insurance policies (including any excess or "umbrella" policies), whichever is greater. If SERVICE PROVIDER is self-insured, SERVICE PROVIDER shall provide its Certificate of Permission to Self-Insure, duly authorized by the Department of Industrial Relations.
3 Updated: April 2024

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8.2. Endorsements. SERVICE PROVIDER shall provide proof of the following endorsements, listed for each policy for which endorsements are required, as outlined below:

8.2.1. General Liability and pollution liability (when pollution liability applies).

8.2.1.1. "Additionally Insured" - The City of Morgan Hill, its elected or appointed officials, boards, agencies, officers, agents, employees, and volunteers are named as additional insureds on a form at least as broad as ISO Form CG 20 10 for ongoing operations.

8.2.1.2. "Waiver of Rights of Subrogation" - The insurer waives the right of subrogation against the City of Morgan Hill and CITY'S elected or appointed officials, boards, agencies, officers, agents, employees, and volunteers; and

8.2.1.3. "Primary and Non-Contributing" - Insurance shall be endorsed to be primary and non-contributory and will not seek contribution from the City's insurance or self-insurance and shall be at least as broad as ISO Form CG 20

01. 8.2.2. Workers Compensation.

Because the performance of SERVICE PROVIDER'S work or service under this Agreement involves access to or activity on any property or premises owned or occupied by the CITY, including, but not limited to, SERVICE PROVIDER'S presence during site visits and meetings, then insurer waives the right of subrogation against the City of Morgan Hill and the CITY'S elected or appointed officials, boards, agencies, officers, agents, employees, and volunteers.

8.3. Qualification of Insurers. All insurance required pursuant to this Agreement must be issued by a company licensed and admitted, or otherwise legally authorized to carry out insurance business in the State of California, and each insurer must have a current AM.

Best's financial strength rating of "A" or better and a financial size rating of "VI I" or better.

8.4. Certificates. SERVICE PROVIDER shall furnish CITY with copies of all certificates as outlined herein, whether new or modified, promptly upon receipt. In the event of a claim or legal action, SERVICE PROVIDER shall promptly furnish CITY of Morgan Hill with copies of all policies outlined herein. No policy subject to SERVICE PROVIDER'S agreement with CITY shall be canceled or materially changed except after thirty (30) days' notice by the insurer to CITY. A "material change" is a change that results in noncompliance with any insurance requirements in this section 8. Certificates, including renewal certificates, may be mailed electronically to [email protected] or delivered to the Certificate Holder address provided herein.

Certificate Holder address:

City of Morgan Hill
Attn: Risk Management
17575 Peak Avenue
Morgan Hill, CA 95037
5 Updated: April 2024

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9. Non-Liability of Officials and Employees of CITY. No official or employee of CITY shall be personally liable for any default or liability under this Agreement.

10. Compliance with Law.

10.1. SERVICE PROVIDER and its officers, employees, agents, and subcontractors shall comply with all applicable laws, ordinances, administrative regulations, and permitting requirements in carrying out their obligations under this Agreement. SERVICE PROVIDER and its officers, employees, agents, and subcontractors covenant there shall be no discrimination based upon any basis prohibited by State or Federal law, including but not limited to, race, color, creed, religion, gender, marital status, age, sexual orientation, national origin, mental disability, physical disability, medical condition, or ancestry, in any activity pursuant to this Agreement.

10.2. For installation labor, without limiting the provisions of Section 10.1 above, each worker performing work under this Agreement shall be paid at a rate not less than the prevailing wage as defined in Sections 1771 and 1774 of the Labor Code. The prevailing wage rates are available online at http://www.dir.ca.gov/dlsr. SERVICE PROVIDER shall post a copy of the applicable prevailing rates at the Worksite. Pursuant to Labor Code Section 1775, SERVICE PROVIDER and any Subcontractor shall forfeit to CITY as a penalty up to two hundred dollars ($200.00) for each calendar day, or portion thereof, for each worker paid less than the applicable prevailing wage rate. SERVICE PROVIDER shall also pay each worker the difference between the applicable prevailing wage rate and the amount actually paid to that worker.

10.3. DIR Registration. CITY will not accept a Bid Proposal from or enter into a contract with a SERVICE PROVIDER, without first receiving proof to the satisfaction of CITY that SERVICE PROVIDER and its subcontractors are registered with the California Department of Industrial Relations to perform public work under Labor Code Section 1725.5, subject to limited legal exceptions. Under Labor Code section 1771.4, this Agreement is subject to compliance monitoring and enforcement by the California Department of Industrial Relations.

10.4. Compliance with Wage and Hour Laws: SERVICE PROVIDER, and any subcontractor it employs to complete work under this Agreement, shall comply with all applicable federal, state, and local wage and hour laws. Applicable laws may include, but are not limited to, the Federal Fair Labor Standards Act and the California Labor Code.

Final Judgments, Decisions, and Orders: For purposes of this Section, a "final judgment, decision, or order" refers to one for which all appeals have been exhausted or the time to appeal has expired. Relevant investigatory government agencies include: the federal Department of Labor, the California Division of Labor Standards Enforcement, or any other governmental entity or division tasked with the investigation and enforcement of wage and hour laws.

Prior Judgments against SERVICE PROVIDER and/or its Subcontractors: BY SIGNING

THIS AGREEMENT, SERVICE PROVIDER AFFIRMS THAT IT HAS DISCLOSED ANY

FINAL JUDGMENTS, DECISIONS OR ORDERS FROM A COURT OR
INVESTIGATORY GOVERNMENT AGENCY FINDING - IN THE FIVE (5) YEARS

PRIOR TO EXECUTING THIS AGREEMENT - THAT SERVICE PROVIDER OR ITS SUBCONTRACTOR(S) HAS VIOLATED ANY APPLICABLE WAGE AND HOUR LAWS.

SERVICE PROVIDER FURTHER AFFIRMS THAT IT OR ITS SUBCONTRACTOR(S) 6 Updated: April 2024

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HAS SATISFIED AND COMPLIED WITH - OR HAS REACHED AGREEMENT WITH

THE CITY REGARDING THE MANNER IN WHICH IT WILL SATISFY - ANY SUCH JUDGMENTS, DECISIONS OR ORDERS.

Judgments or Decisions During Term of Contract: If at any time during the term of this Agreement, a court or investigatory government agency issues a final judgment, decision or order finding that SERVICE PROVIDER or any subcontractor it employs to perform work under this Agreement has violated any applicable wage and hour law, or SERVICE PROVIDER learns of such a judgment, decision, or order that was not previously disclosed, SERVICE PROVIDER shall inform the City Attorney, no more than fifteen (15) days after the judgment, decision or order becomes final or of learning of the final judgment, decision or order. SERVICE PROVIDER and its subcontractors shall promptly satisfy and comply with any such judgment, decision, or order, and shall provide the City Attorney with documentary evidence of compliance with the final judgment, decision, or order within five (5) days of satisfying the final judgment, decision, or order. CITY reserves the right to require SERVICE PROVIDER to enter into an agreement with CITY regarding the manner in which any such final judgment, decision, or order will be satisfied.

City's Right to Withhold Payment: Where SERVICE PROVIDER or any subcontractor it employs to perform work under this Agreement has been found in violation of any applicable wage and hour law by a final judgment, decision or order of a court or government agency, CITY reserves the right to withhold payment to SERVICE PROVIDER until such judgment, decision or order has been satisfied in full.

Material Breach: Failure to comply with any part of this Section constitutes a material breach of this Agreement. Such breach may serve as a basis for immediate termination of this Agreement and/or any other remedies available under this Agreement and/or law.

Notice to City Related to Wage Theft Prevention: Notice provided to the City Attorney as required under this Section shall be addressed to: City Attorney, City of Morgan Hill, 17575 Peak Avenue, Morgan Hill, CA 95037. The Notice provisions of this Section are separate from any other notice provisions in this Agreement and, accordingly, only notice provided to the above address satisfies the notice requirements in this Section.

11. _Independent Contractor. SERVICE PROVIDER is an independent contractor and not an agent or employee of CITY.

12. Confidentiality. All data, documents, or other information received by SERVICE PROVIDER from CITY or prepared in connection with SERVICE PROVIDER'S services under this Agreement are deemed confidential and shall not be disclosed to any third party by SERVICE PROVIDER without prior written consent by CITY.

13. Conflict of Interest and Reporting. SERVICE PROVIDER shall at all times avoid conflict of interest or appearance of conflict of interest in performance of this Agreement.

14. Notices. All notices shall be personally delivered or mailed via first class mail to the address listed below. These addresses shall be used for delivery of service of process. Notices shall be effective five (5) days after date of mailing, or upon date of personal delivery. 7 Updated: April 2024

Docusign Envelope ID: 3471 BBF8-DB6B-4B36-9871-28B8F112B689 Address of SERVICE PROVIDER is as follows:

Solutionz, Inc.

Stephen Spears
1029 N. Swarthmore Ave.

Pacific Palisades, California 90272
Address of CITY is as follows:

Michelle Bigelow
City of Morgan Hill
17575 Peak Avenue
Morgan Hill, CA 95037
with a copy to:

City Clerk
City of Morgan Hill
17575 Peak Avenue
Morgan Hill, CA 95037

15. Licenses, Permits and Fees. SERVICE PROVIDER shall obtain a City of Morgan Hill Business License, all permits and licenses to the extent required by ordinances, codes, and regulations of the federal, state, and local government.

16. Service Provider's Proposal. If applicable, this Agreement shall include SERVICE PROVIDER'S proposal or bid which is incorporated herein. In the event of any inconsistency between the terms of the proposal and this Agreement, this Agreement shall govern.

17. Maintenance of Records.

17.1. Maintenance. SERVICE PROVIDER shall prepare, maintain, and preserve all reports and records that may be required by federal, state, and CITY rules and ordinances related to services provided under this Agreement. SERVICE PROVIDER shall maintain records for a period of at least 3 years after receipt of final payment under this Agreement. If any litigation, claim, negotiation, audit exception, or other action relating to this Agreement is pending at the end of the 3-year period, then SERVICE PROVIDER shall retain said records until such action is resolved.

17.2. Access to and Audit of Records. CITY shall have the right to examine, monitor and audit all records, documents, conditions, and activities of SERVICE PROVIDER and its subcontractors related to services under this Agreement. Pursuant to Government Code Section 8546. 7, if this Agreement involves the expenditure of public funds in excess of $10,000, the Parties to this Agreement may be subject, at the request of CITY or as part of any audit of CITY, to the examination and audit of the State Auditor pertaining to matters connected with the performance of this Agreement for a period of three years after final payment under the Agreement.

17.3. Ownership of Work Product. All documents or other information developed or received by SERVICE PROVIDER for work performed under this Agreement shall be the property of CITY. SERVICE PROVIDER shall provide CITY with copies of these items upon demand or upon termination of this Agreement.

18. Familiarity with Work. By executing this Agreement, SERVICE PROVIDER represents that:
( 1) it has investigated the work to be performed; (2) it has investigated the site of the work and is aware of all conditions there; and (3) it understands the difficulties and restrictions of the work under this Agreement. Should SERVICE PROVIDER discover any conditions materially differing from those 8 Updated: April 2024

Docusign Envelope ID: 3471 BBF8-DB6B-4B36-9871-28B8F112B689 inherent in the work or as represented by CITY, it shall immediately inform CITY and shall not proceed, except at SERVICE PROVIDER'S risk, until written instructions are received from CITY.

19. Time of Essence. Time is of the essence in the performance of this Agreement.

19.1. Force Majeure: Solutionz shall be excused from performance hereunder during the time and to the extent that it is prevented from performing by Acts of God, terrorism, war, pandemics, epidemics, medical emergencies, supply line interruptions, acts of government or administrative suspension, limitation or shut-down, and shall not be held liable for any impacts, delays, defaults or damages related to the work arising out of the foregoing, or from the direct or indirect consequences or aftermath of any of the foregoing; further, in case of such delay, Spinitar shall be entitled to equitable relief, including but not necessarily limited to extension of the Contract Time at least equal to the duration of the delay.

20. No Assignment. Neither this Agreement nor any portion shall be assigned by SERVICE PROVIDER, without prior written consent of CITY. Any attempted assignment not first approved by CITY shall be void and, at CITY'S option, shall terminate this Agreement effective as of the date of such attempted assignment.

21. Attorney Fees. In any legal action, dispute or arbitration arising out of or relating to this Agreement, the prevailing party shall be entitled to an award of its reasonable attorney fees, costs and expenses incurred.

22. Defense and Indemnification.

22.1. Defense and Indemnification for Design Professional Services. Consistent with California Civil Code Section 2782.8, for design professional services to be performed under this agreement by a design professional, as that term is defined under said Section 2782.8, SERVICE PROVIDER shall, to the fullest extent permitted by law, indemnify, defend and hold harmless CITY, its elected or appointed officials, boards, agencies, officers, agents, employees, and volunteers ("INDEMNITEES") from and against any and all claims, liabilities, expenses, liens, or damages of any nature, including liability for bodily injury, property damage or personal injury, and including reasonable attorneys' fees and expenses, that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of SERVICE PROVIDER, and/or its agents, officers, employees, subcontractors, or independent contractors in performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement ("CLAIM") to the extent of SERVICE PROVIDER'S proportionate percentage of fault.

22.2. Defense and Indemnification for Non-Design Professional Services. For all services performed under this agreement not covered by Section 22.1 above, SERVICE PROVIDER shall, to the fullest extent permitted by law, indemnify, defend and hold harmless CITY, its elected or appointed officials, boards, agencies, officers, agents, employees, and volunteers ("INDEMNITEES") from and against any and all claims, liabilities, expenses, liens, or damages of any nature, including liability for bodily injury, property damage or personal injury, and including reasonable attorneys' fees and expenses, that arise out of, pertain to, or relate to the performance of this Agreement or the failure to comply with any obligations contained in this Agreement by SERVICE PROVIDER, and/or its agents, officers, employees, subcontractors, or independent contractors ("CLAIM").
9 Updated: April 2024

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22.3. Exceptions. SERVICE PROVIDER is not required to indemnify INDEMNITEES against liability for bodily injury, property damage or personal injury, or any other loss, damage or expense arising from the sole negligence, active negligence, or willful misconduct of the CITY.

22.4. Not limited by insurance. The indemnity, defense and hold harmless provisions of this Agreement apply to all CLAIMS alleged against an INDEMNITEE, regardless of whether any insurance policies are applicable. Policy limits do not act as a limitation upon the amount of indemnification or defense to be provided by SERVICE PROVIDER.

22.5. .Right to Offset. CITY shall have the right to offset against any compensation due SERVICE PROVIDER under this Agreement any amount due CITY from SERVICE PROVIDER as a result of SERVICE PROVIDER'S failure to pay CITY promptly any indemnification arising under this Section (21) and any amount due CITY from SERVICE PROVIDER arising from SERVICE PROVIDER'S failure either to (i) pay taxes on amounts received pursuant to this Agreement or (ii) comply with applicable workers' compensation laws.

22.6. Interpretation. This Section shall constitute an agreement or contract of indemnity, incorporating the interpretations under California Civil Code Section 2778. It is expressly understood and agreed that the obligation of the SERVICE PROVIDER to indemnify the INDEMNITEE shall be as broad and inclusive as permitted by the laws of the State of California and shall survive termination of this Agreement.

23. Entire Agreement; Modification; Conflicting Provisions. This Agreement constitutes the entire Agreement between the Parties and supersedes any previous agreements, oral or written. This Agreement may be modified, or provisions waived only by a subsequent mutual written agreement executed by CITY and SERVICE PROVIDER. If the provisions contained in the main body of this Agreement conflict with any provision contained in an exhibit to this Agreement, the provisions of the main body of this Agreement shall govern and control over any provision contained in an exhibit to this Agreement.

24. Governing Law and Venue. This Agreement shall be construed in accordance with the laws of the State of California. This Agreement was entered into and is to be performed in the County of Santa Clara. Any action or dispute arising out of this Agreement shall only be brought in Santa Clara County.

25. Notice of Security and/or Privacy Incident. If SERVICE PROVIDER, or its subconsultant, suspect, discover or are notified of a data security incident or potential breach of security and/or privacy relating to CITY PII, PHI and/or PCI, SERVICE PROVIDER shall immediately, but in no event later than forty-eight (48) hours from suspicion, discovery, or notification of the incident or potential breach, notify CITY of such incident or potential breach. SERVICE PROVIDER shall, upon CITY's request, investigate such incident or potential breach, inform the CITY of the results of any such investigation, and assist the CITY in maintaining the confidentiality of such information. In addition to the foregoing, SERVICE PROVIDER shall provide CITY with any assistance necessary to comply with any state and/or federal laws requiring the provision of notice of any privacy incident or security breach with respect to any CITY PII, PHI and/or PCI to the affected or impacted individuals and/or organizations, in addition to any notification to applicable state and federal agencies. SERVICE PROVIDER agrees that it shall reimburse CITY for all expenses, costs, attorneys' fees, and resulting fines, penalties, and damages associated with such incident, breach, investigation and/or notification.

26. Interpretation. This Agreement is a negotiated document and shall be deemed to have been drafted jointly by the Parties, and no rule of construction or interpretation shall apply against any 10 Updated: April 2024

Docusign Envelope ID: 3471 BBF8-DB6B-4B36-9871-28B8F112B689 particular Party based on a contention that the Agreement was drafted by one of the Parties including, but not limited to, California Civil Code § 1654, the provisions of which are hereby waived. This Agreement shall be construed and interpreted in a neutral manner.

27. Preservation of Agreement. If any term, provision, covenant, or condition of this Agreement is held by a court of competent jurisdiction to be invalid or unenforceable, the rest of the Agreement shall remain in full force and effect and shall in no way be affected or invalidated.

28. Binding Agreement. Notwithstanding the provisions of Section 20 above, this Agreement shall bind any and all successors in interest, legal representatives and/or other permitted assignees or transferees of SERVICE PROVIDER in the same manner as if those successors in interest, legal representatives or other permitted assignees or transferees had entered into this Agreement originally.

29. Electronic Signatures. Unless otherwise prohibited by law or CITY policy, the Parties agree that an electronic copy of a signed contract, or an electronically signed contract, has the same force and legal effect as a contract executed with an original ink signature. The term "electronic copy of a signed contract" refers to a transmission by facsimile, electronic mail, or other electronic means of a copy of an original signed contract in a portable document format. The term "electronically signed contract" means a contract that is executed by applying an electronic signature using technology approved by the CITY.

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30. Authority to Execute. Those individuals who are signing this Agreement on behalf of entities represent and warrant that they are, respectively, duly authorized to sign on behalf of the entities and to bind the entities fully to each and all of the obligations set forth in this Agreement.

IN WITNESS THEREOF, these Parties have executed this Agreement on the day and year shown below.

AS SET FORTH IN CA. CORP. CODE § 313, TWO SIGNATURES ARE REQUIRED FOR CALIFORNIA CORPORATIONS:
(1) CHAIRPERSON OF THE BOARD, PRESIDENT, OR VICE PRESIDENT; AND (2) SECRETARY, ASSISTANT SECRETARY, CHIEF FINANCIAL OFFICER, OR ASSISTANT TREASURER.

ATTEST:
� ����
DocuSigned by:
�a�eiikJOeputy City Clerk
Michelle Bigelow
Print Name
Date: 4/29/2024
�Ooo•S"""°'
APPROVED AS TO FORM:
¢1/\A1,,l latli IA,
Donald A. Larkin
Print Name
Date: 4/29/2024
1056243
Contractor's License Number(s) (if applicable)
Expiration Date( s) ------- 0113112025 --
Seal:

CITY OF MORGAN HILL
rc�;:yu�'W1JM£�------- �it¥1Mmlager
Christina J. Turner
Print Name
Date: 4/29/2024
SOLUTIONZ, INC.
�
DocuSigned by:

Mlt, f:7705CE44114F3 .. (76Ui1A1
Bryce Bolling
Print Name and Title of Signer.

If Corporate: Chairman, President, or
Vice President
Date: 4/24/2024
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David Knott
Print Name and Title of Signer.

If Corporate: Secretary, Assistant
Secretary, Chief Financial Officer, or
Assistant Treasurer
Date: 4/24/2024
1000037382
Contractor's DIR Registration Number(s) (if applicable) Expiration Date(s) _06_/3_0_/2_0_24 _______ _
12 Updated: April 2024

Docusign Envelope ID: 3471 BBF8-DB6B-4B36-9871-28B8F112B689

EXHIBIT A

SCOPE OF WORK
Overview
The City of Morgan Hill would like to upgrade their Council Chamber AV systems to achieve the following goals:

High Definition (HD) Production for Zoom & Broadcast
The existing Production System only offers two standard definition cameras to be sent to Zoom, requires a lot of interaction to point cameras, recall presets, and put together a Broadcast-ready signal for recording and distribution. It is desired to use some level of automation to automatically select a camera preset based on microphone activation. The existing Leightronix Recorder/Billboard/Playout System utilizes Windows 7 and must be replaced.

Production Outputs
• Charter Cable Encoder
• YouTube/Facebook Live
• Camera feed to Zoom
• Civic Plus Encoder
• It's not known how Civic Plus encodes a stream or if you intend to use this feature. You will be able to feed streams to YouTube, Facebook Live, and Civic Plus using a Restream Account with 3 stream licenses. If Civic Plus includes an Encoder, we will feed it appropriate audio & video.

Audio Upgrade
The existing Biamp Nexia series Audio Processor is well past end-of-life.

The microphones are old and long discontinued.

Any solution must include Remote Microphone Muting capability to allow the ability of the Clerk or Production Operator to mute or unmute a member microphone.

It will include a new 2 ch Assistive Listening System with the ability for people to use their own phones for listening.

New Power Amplifiers to feed Speakers.

PC Refresh
We will install (4) new PCs for:
• Zoom PC to replace Laptop
• Presentation
• PC for Video Billboard/Playout administration
• Clerk PC with two Video Heads
o The PCXs will be provided by the City.

Control Upgrade
The existing Control Processor and Touch Panels are long discontinued and no longer supported. New hardware and programing is required.

Additional Feature Requests
o Discussion Microphone System with 16 Mies and Remote Mute capability

Docusign Envelope ID: 3471 BBF8-DB6B-4B36-9871-28B8F112B689 o Dais Touch Panels and Voting
o Streaming Encoder Refresh with Recording capability
o Projector refresh
HD Production System
o Cameras ( 6)
• Council - We will replace the (4) existing Standard
Definition Cameras with Vaddio RoboShot 30E HD
Cameras with SDI Output.
o We will pull new cable and reuse the
mounting location for all cameras
o We will add a 5th camera to provide a
dedicated wide shot of the Dais to use when
a camera must move between shots.
o We will include a 6th camera on the North Wall of Dais Platform for an additional angle on Table Discussions.
o All Cameras will be Black unless you request white. There is no price difference.
o Production Room
• Production Switcher
You need an HD Video Switcher with a minimum of (5) SDI Inputs for cameras and (2) HDMI Inputs for Presentation and VTC PCs. We have included a FOR-A HVS-100 which can be remotely controlled by the Control System (for automation options) and includes a physical controller for manual operation.

The Aux Bus will be used to select an outgoing signal for the VTC System. We do not want to send the incoming Zoom signal back to them. So when the Far End is talking, the system will automatically send an image the Dais Wide shot back to the person talking.
• Video Switching Automation (Included)
o This allows the Broadcast signal to automatically show the camera preset for the person who is actively talking.
o For the Council, there will be one camera at the back that always has a wide shot. This may be full width to capture the entire room, but will generally be zoomed in to capture all applicable Council or Board members. There will also be four "Closeup" Cameras. If a camera needs to move to another preset for the same camera, the wide shot will always appear between the two shots so the camera image will never be seen while moving.
o ,Mode
The automation software operates in your choice of three modes:
o Full Automation -All cameras and position/zoom presets are selected and switched automatically based on microphone data, selected modes, and selected operational options. Outgoing VTC video is also selected automatically - Chamber wide shot when

Docusign Envelope ID: 3471 BBF8-DB6B-4B36-9871-28B8F112B689 someone remote is speaking so they don't see themselves o Power Assist - All cameras and position/zoom presets are selected based on microphone data, selected modes, and selected
operational options. However, the proposed Council shot is placed in Preview rather than program. The operator may use this suggestion or select another and then "Take" when ready. o Full Manual - Council Camera/VTC selection is fully handled by the Production Operator.
• Speaker Timer
The Speaker Timer can be set to any amount of time the Clerk, or Mayor/Chair chooses. A default (such as 2:00 minutes) may be adjusted at any time. The Timer appears at the bottom of the Broadcast Screen, the in-Room Displays, on the Touch Panels, and on the outgoing video sent to Broadcast & Public VTC (Zoom).
• Character Generator (CG)
We will provide a device which will allow you to add Graphics to your Broadcasts. In addition to City Logo, Date & Time at all times, we will provide the ability to enter the name of the meeting, a standardized list of Agenda items for each Meeting type, and on-screen Speaker Timer. If you select the Dais Touch Monitors and Voting Option, the system will also show the members Name and Title whenever they speak long enough for the camera to provide a closeup.

Here is an example from the City of Newman:
https://www.youtube.com/watch?v=7Yh22z1ML YA
Note: Newman is aboutl hour from Morgan Hill if you would like to visit.

Docusign Envelope ID: 3471 BBF8-DB6B-4B36-9871-28B8F112B689 • Replace DM Switching Matrix with Network-based Video Switching System There is an existing Crestron l 6xl 6 Matrix that is now about 10 years old.

Acknowledgment of the age alone should advise consideration of replacement.

We will identify below the source inputs and outputs that will be part of the upgraded system. This takes into account moving the Clerk Seat from the North to South side of the Dais.

INPUTS
.Room Source Inputs
1) Floor Box (CMGTl) - Presentation PC at Lectern
2) Floor Box (CMGTl A) - HDMI Input at Lectern
3) Clerk PC out 1 to Floor Box FB 1
4) Clerk PC out 2 to Floor Box FB 1
5) Floor Box (CMGT6 & 7) - HDMI Portable Input Encoder 1 6) HDMI Input Plate in Clerk Floor Box FB 1
7) HDMI Input Plate at Clerk FB2
8) HDMI Input Plate at Wall
_Rack System Inputs
9) Zoom PC
l0)Admin PC
11) Broadcast feed (Pre or Post CG) (post 16xl 6)
12) Air Media - HDMI Input
13) Presentation Feed with Timer Overlay
14) Zoom Send Overlay

OUTPUTS
Room
1 ) Projector 1
2) Projector 2
3) Projector 3
4) Clerk Touch Monitor (TPl - Control)
5) Clerk Touch Monitor (TP2- Clerk PC)
6) Clerk Touch Monitor (TP3 - Assignable - Clerk Out 2, Zoom, Pres) 7) Dais 55" Monitor
8) Lectern 55" Monitor
9) Floor Box (CMGTl ,5,6,7-1, 1 A) - HDMI Portable Decoder 1 10) Floor Box (CMGTl ,5,6,7-2, 1 A) - HDMI Portable Decoder 2 11 ) Lobby Monitor
12) West Conference Room
13) Dais Touch Monitor# 1
14) Dais Touch Monitor #2
15) Dais Touch Monitor #3
16) Dais Touch Monitor #4
17) Dais Touch Monitor #5
18) Dais Touch Monitor #6
19) Dais Touch Monitor #7

Docusign Envelope ID: 3471 BBF8-DB6B-4B36-9871-28B8F112B689 _Rack
20) Producer's Touch Monitor (TP2)
21) 17" Assignable Rack Monitor 1 (1080p) (CIT RMP-161-X17) 22) 17" Assignable Rack Monitor 2 ( 1080p) (CIT RMP-161-Xl 7) 23) Active Presentation to Switcher
24) Speaker Timer Overlay/Vote - Room
25) Speaker Timer Overlay/Vote - Zoom
• PC's
We will install the (4) owner furnished PCs that you will need for the system as we have designed it. These are all micro format with a Ethernet-based KVM that allows the Producer and Clerk to view and control any of the PCs they need to.
o Clerk PC
• Locate at Clerk Station or in the AV Rack. We will support two video outputs from it if they exist.
o Presentation PC
• Located in rack or at Lectern)
o Video Conference PC (for WebEx or other VTC opp)
• We will also provide USB Capture devices to insert Chamber audio & video into the Video Conference App.
o Admin PC for Producer
• For Graphics, Recorder, Scheduled Playout Appliance, or any need
• Document Camera
o The existing Ceiling Doc Cam will not be supported. You may connect a portable document camera at the Lectern or Clerk Station HDMI input. • 55" Monitors
o We will provide (3) 55" Monitors to refresh the existing (2) Monitors in the Dais Well and the existing 55" Monitor on a cart.

Docusign Envelope ID: 3471 BBF8-DB6B-4B36-9871-28B8F112B689 • Production Console
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We will utilize your existing rack and console frame.

We will place the Production Switcher Controller, 22" Touch Monitor and Wireless keyboard & Mouse on the counter. The Wireless Keyboard and Mouse may be assigned to any of the three PCs. We will reuse two of your existing Standard Definition TV /Monitors on top of the console for Cable TV confidence monitoring. We have included powered speakers that may be assigned to listen to any source or submix. Equipment will be installed in the main rack and under the console much as it is now.
• Production Monitors
o We will add a 20.5" Monitor on the left to display the Multiview output of the Production Switcher. This will display all 6 cameras, the active Presentation Signal, the VTC PC, Preview and Program.
o We will install (4) new 17" Monitors in the Console. (Your existing 17" Rack Monitor should be retained as a Spare.
• One monitor will display the master Broadcast signal post Character Generator.
• One will display the Switcher Multiview output showing the cameras, Preview & Program.
• One will be dedicated to Video Conference
• The fourth one may display either the active presentation PC, AirMedia, or the output of the Producer's admin PC which may be used for such things as the Cablecast Broadcast
Billboard/Scheduled Playout System, the Character Generator, the Streaming Encoder/Recorder, YouTube Studio, or any other administrative purpose.

Docusign Envelope ID: 3471 BBF8-DB6B-4B36-9871-28B8F112B689 o We will reuse at least one of your existing Standard Definition monitors/TVs to allow monitoring of your Standard Definition Broadcast signals (i.e. Comcast).
o The Producer may use their Touch Monitor to assign PCs or AirMedia to the Assignable Monitor as well as select assignment of the Logitech Keyboard and Mouse.
• Streaming Encoder/Recorder
o We have provided an option to provide a new Audio & Video Streaming Encoder and Recorder. The encoding stream may be automatically initiated when the Record button is pressed on the Touch Panel. The unit will record stream at a higher rate than the stream if desired. This unit may also be used to create an audio only recording if desired. After the recording is stopped, the file may be uploaded to a desired network storage, as well as left on the local recorder drive if desired.

Replace Projectors - 16,000 Lumen
o We will replace all three projectors with Panasonic PT-MZl 6 series 16,000 Lumen UXGA Laser-based Projectors. We have included Long Throw Lenses and appropriate mounting hardware.

Audio System Refresh
o We have included ( 12) microphones to replace all Dais Microphones.

These will have programmable buttons and LEDs which will be set to push on and push off. They may also be controlled by the Clerk, Producer, or the respective Dais Touch Monitors.
o Your existing wireless microphones are actually operating on frequencies that are not supposed to be used for Wireless Microphones. The FAA turned that frequency band over to Emergency Services and other purposed. We will provide (2) new Wireless Handheld Microphone Systems.
o We will replace the Biamp Nexia audio processing with current generation Biamp Tesira Server hardware.
• The Inputs will support Acoustic Echo Cancellation on every microphone channel.
• The system includes a VoIP telephone interface to allow connection of public or and/or members via a simple voice only connection.
• We have provided an option for expansion of the audio system to support up to (16) Table Microphone discussion system.
o We will install a new energy efficient 8-channel amplifier to provide extended reliable

Docusign Envelope ID: 3471 BBF8-DB6B-4B36-9871-28B8F112B689 life.
o The existing Ceiling Speakers will be reused.
o We will provide a new Assistive Listening System including, at your request, (4) Rechargeable Receivers with Ear Speakers. Since you expressed interest in WiFI based Assistive Listening to allow users to use their own Phone or tablet, we have provided a WiFi-based system that can provide two channels (e.g. English & Foreign) to users running the Listen Everywhere App. We will also provide (4) WiFi-based Receivers with Ear Speakers and (2) Inductive neck Loops for use by those with Hearing Aids that support this.
o Discussion Microphone System
We have provided a subsystem that includes ( 16) Desk Microphones, Cables, and a portable case with Input Plate, power distribution, and a device to provide Dante encoding and logic Interface for remote muting control from the microphone itself, or the Clerk or Producer Touch Panels. We will also include additional Audio
Processing in the Rack to support these as well as the
engineering and programming to integrate seamlessly as
part of the system including audio and video conferencing.

This option includes a small Network Switch so we can
transport all audio and control over a single LAN Jack in the Floor Box. We have included ( 16) 25' Mic Extension Cables (this is addition to the 1 O' cable attached to each
Microphone.)
Control System
o Control Processor
A new Control System will be installed and programmed to facilitate the system functions. Both the Clerk and the Producer will get a 22" Touch Panel which will allow:
• Chamber Projector Power and Screen
• Presentation & VTC Source Selection for Display in the Chamber • Audio Control
• Speech Volume within the Chamber
• Presentation Volume within the Chamber
• VTC Volume within the Chamber
• Public Audio On/Off
• Production
• Video Preview
• Camera Switching Automation Controls
• Member Titles & Agenda Graphics selection
• Audio Monitoring Selection and Volume
• Stream/Recording Start/Stop
• Additional functions will be available as noted with certain options

Docusign Envelope ID: 3471 BBF8-DB6B-4B36-9871-28B8F112B689 o Dais Touch Monitors & Voting
We have provided an option to provide (7) 22"
Touch Monitors for the Dais Members.

A very low profile mount will be used that allows
the monitor to lay barely higher than the modest
rail.

Each member will see Presentation or Zoom Video,
be able to control their micro phone mute, and be
able to Vote. The Mayor position will be able to
start and close Voting (if desired, as the Clerk may
also do this), control Lectern Microphone Mute,
and control the Timer.
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If desired, you may also implement the Request to Speak (RTS) feature. This allows for use of Parliamentary Procedure with each member pressing a button indicating their Request to Speak. The Mayor/Chair may recognize their choice of speaker and thus enable their microphone. Any member may also immediately disregard the RTS function and unmute their microphone.

Using Meeting Editor, an administrator may enter the name of any group that meets in that room, list the names of all members, their display titles for Broadcast, their voting rights, and if they get a Request to Speak Display Queue. Each member logs in by selecting their name from a list on the screen after the Clerk selects and "starts" the Meeting (this is actually usually done well ahead of the meeting actually starting.) Yes
Yes
o Ethernet Switch
We will provide two Netgear 40-port managed switches with POE+ sufficient to power all devices and switch all video streams without blocking. If you desire, we will connect to your network at one point and use an IP addressing scheme appropriate.

P age 11 I 12

Docusign Envelope ID: 3471 BBF8-DB6B-4B36-9871-28B8F112B689

INTEGRATION SERVICES
Labor
The Technical Services cost includes the Design Engineering, Project Engineering, CAD, Programming, Project Management, Shop and Field Installation Labor, Site Configuration and Testing, and Training required for the project. Hourly technician Labor is priced for Prevailing Wage.

Materials costs include the cable, connectors, plate, panels and miscellaneous incidental components required to integrate the AV equipment into the final system.

Training
Training will include separate sessions for Room Users, Clerk, and Technical Administrators.

Training sessions will be as long as required. Room Users usually need less than 20 minutes. The Clerk will probably want 1-2 hours.

Technical Administrators will probably want 4-6 hours.

Project Duration
Once we are onsite, we will require approximately 4 weeks for installation, commissioning, and Training.

Warranty
Budget assumes l Year Warranty with:
2 hour Phone Support
8 hour remote Support via VPN
48 Hour on-site response if needed
[2) Preventative Maintenance Visits/year
Attachments
- Detailed Pricing Breakout

Docusign Envelope ID: 3471 BBF8-DB6B-4B36-9871-28B8F112B689 :XHIBIT B

SCHEDULE OF COMPENSATION
Qty Manufacturer Model# Description Unit Price Ext Price Updated 3/23/2024

PRODUCTION
6 VADDIO 999-99330-000 ROBOSHOT 30E SDI $4,518.23 $27,109.38 1 FOR_A HVS-l00TA Production Switcher $13,942.00 $13,942.00 1 FOR-A HVS-l00PCI Dual HDMI Input Card $2,486.00 $2,486.00 1 FOR-A HVS-l00ED Editor Control Software $1,421.00 $1,421.00 1 Digit 7A0-0348-RK ChyTV Multi-SDI SD/HD SDI Input/output $6,019.23 $6,019.23 1 AJA 3G-AMA Audio to SDI Inserter $1,280.77 $1,280.77
1 AJA KUMO1616 16x16 SDI Switcher $3,242.31 $3,242.31
1 Digit 7A0-0348-RK ChyTV Multi-SDI SD/HD SDI Input/output $6,019.23 $6,019.23 5 DECIMATOR MD-HX SDI-HDMI Scaler Cross Converter $378.21 $1,891.05 1 TIGHTROPE CBL-VI02-600 CABLECAST VIDEO SERVER - 2 port $24,994.67 $24,994.67 1 TIGHTROPE CBL-CGPLAYER-LIC Cablecast CG bulletin board software for VIO4 $1,653.33 $1,653.33 4 MARSHALL V-LCD173HR 6RU 17" 1080p Rack Monitor $1,295.00 $5,180.00

PRESENTATION AND ROUTING
3 SAMSUNG QB55R 55" Commercial Monitor $1,123.00 $3,369.00 3 LOGITECH MX KEYS/MX MASTER Wireless Keyboard & Mouse with PC Switching $286.25 $858.75 1 MAGEWELL 32070 USB Capture 2.0 SDI $383.33 $383.33
2 CRESTRON DGE-100 Digital Graphics Engine 100 $1,375.00 $2,750.00 AUDIO
1 AUDINATE ADP-USB-AU-2X2 AVIO DANTE 2x2 USB 10 $252.00 $252.00 Cardioid-18" Desktop Gooseneck Condenser
Microphone, Attached 10 • XLR Cable, Logic
12 SHURE MX418D/C Functions, Progra $306.41 $3,676.92
UDP Version (For Crestron/AMX/QSC logic control
3 CLOCK AUDIO CDT100MK3-PSU-UDP users only) Dante Transporter for Audio and Control $1,119.23 $3,357.69 Single Digital Wireless Receiver with PS41US Power
Supply, 1/2 Wave Antenna and Rack Mounting
2 SHURE ULXD4=-H50 Hardware $1,011.54 $2,023.08
2 SHURE ULXD2/B58=-H50 Handheld Transmitter with BETA 58A® Microphone $641.03 $1,282.06 Passive Antenna Splitter/Combiner Kit. Includes Two
1 SHURE UA221 Splitter/Combiners, Four Coaxial Cables, and Att $160.26 $160.26 1 BIAMP TESIRA SERVER 10 AVB DSP Frame $5,725.00 $5,725.00 1 BIAMP EX-UBT USB/Bluetooth Adapter for Tesira $545.00 $545.00 1 BIAMP TESIRA SIC-4 Input Card - 4 ch $282.00 $282.00
3 BIAMP TESIRA SEC-4 Mic Input Card with AEC 4-ch $565.00 $1,695.00 3 BIAMP TESI RA SOC-4 Output Card 4-ch $248.75 $746.25
1 BIAMP TESIRA SVC-2 VOiP Card - 2ch $565.00 $565.00
1 BIAMP TESI RA DAN-1 Dante Network Card $1,152.00 $1,152.00 2 BIAMP TESIRA DSP-2 DSP Processor Card $689.00 $1,378.00 Eight Channel Amp, Configurable 200 watts at 70
1 EXTRON 60-2025-01 volts $2,421.00 $2,421.00
Assistive Listening System - WiFi System - 2 ch Server, 1 LISTEN TECH LWS-10-Al-D 2 LWR-1050 Receivers, 2 Ear Spkrs & 2 Loops $1,395.00 $1,395.00 2 LISTEN TECH LWR-1050 Assistive Listening System - WiFi Receiver $421.00 $842.00 2 LISTEN TECH LA-164 Ear Speaker $17.62 $35.24
5" Creative Reference Multimedia Monitors with
1 MACKIE CR5-XBT (PAIR) Bluetooth (Pair) $292.00 $292.00

CLERK MONITORS
3 CRESTRON TSD-2220-B 21.5" HD Touch Screen Display, Black $1,410.26 $4,230.78 Adjustable LCD Monitor Stand Mount Folding VESA
3 WEARSON WS-03A Monitor Desk Stand $53.32 $159.96
City of Morgan Hill - Line Item Page 1

Docusign Envelope ID: 3471 BBF8-DB6B-4B36-9871-28B8F112B689 3 lcRESTRON IDGE-100
1 CRESTRON TSD-2220-B
1 WEARSON WS-03A
1 CRESTRON DGE-100
1 CRESTRON CP4
3 GLOBAL CACHE GLO-IP2CCP
2 NETGEAR GSM4248P-100NAS
2 FIBERMALL B089D1ZYCJ
2 IWILLINK YUNXI-PN-48LTK-C6
1 SOLUTIONZ INSTALL_MATERIAL
1 FREIGHT
40 SOLUTIONZ DESIGN_M
32 SOLUTIONZ GADD M
81 SOLUTIONZ PROGRAM_M
48 SOLUTIONZ TESTING M
16 SOLUTIONZ SHOPINSTALL_M
144 SOLUTIONZ FIELDINSTALL PW
40 SOLUTIONZ PROJMGMT_M
12 SOLUTIONZ MISC-TRAVEL
1 SOLUTIONZ Subcontract
CT]soLuT10Nz I SS-SUPPO RT-PG

OPTIONS OPTIONS
3 DIGITALINX IPEX5001-WP-W
12 DIGITALINX IPEX5001
27 DIGITALINX IPEX5002
1 DIGITALINX I PEXAR-5000-100
2 DIGITALINX DL-HDRKUNV6
3 DIGITALINX DL-RPIP5000
1 SOLUTIONZ INSTALL_MATERIAL
1 SOLUTIONZ S/H-S
16 SOLUTIONZ DESIGN_M
16 SOLUTIONZ GADD M
16 SOLUTIONZ PROGRAM_M
24 SOLUTIONZ TESTING M
16 SOLUTIONZ SHOPINSTALL_M
I Digital Graphics Engine 100

PRODUCER'S TOUCH MONITOR

21.5" HD Touch Screen Display, Black
Adjustable LCD Monitor Stand Mount Folding VESA
Monitor Desk Stand
Digital Graphics Engine 100

CONTROL HARDWARE
Master Control Processor
Global Cache iTach IP2CC with PoE Option
Netgear Switch - 40 x8, 480W POE+
AXM765 Compatible Copper l0G 30m SFP+
CAT6 Patch Bay - Shielded, 48 port

INSTALLATION MATERIALS
Misc cables, connectors, plates and hardware
(INCLUDE Extension Cord- Power 25' 18# Black, CAT6
25' Black Patch Cord (Stranded))
Freight charges
System Design
CAD Drawing
Programming
Testing & Commissioning
Shop Installation
Field Installation
Project Management
Misc Travel
Cablecast Training

SERVICE & SUPPORT
I Performance Guaranty - 1 Year

OPTIONS

REPLACE MATRIX
HDMI Over IP Wall Plate Encoder
Equipment Total

9.13% Sales Tax
Labor Total
HDMI Over IP Encoder - Scalable 4K Solution over 1Gb
Network w/ full Matrix & Video wall Capability
HDMI Over IP Decoder - Scalable 4K Solution over
1Gb Network w/ full Matrix & Video wall Capability
ARRANGER CNTRLR 5000 51-100
6RU RACKMOUNT SYSTEM, up to 10
Rack panel kit for DigilP IPEX5000 series 5 pack
Misc cables, connectors, plates and hardware
Freight charges
System Design
CAD Drawing
Programming
Testing & Commissioning
Shop Installation
City of Morgan Hill - Line Item
Equipment Total

9.13% Sales Tax
$1,375.oo 1
$1,410.26
$53.32
$1,375.00
$1,466.00
$156.67
$2,432.00
$88.00
$120.00
$6,700.00
$2,903.00
$150.00
$120.00
$150.00
$150.00
$120.00
$150.00
$150.00
$1,000.00
$2,500.00
$0.00
$1.000.00 1
$4.125.oo 1
$1,410.26
$53.32
$1,375.00
$1,466.00
$470.01
$4,864.00
$176.00
$240.00
$6,700.00
$2,903.00
$158,598.88
$14,480.08
$6,000.00
$3,840.00
$12,150.00
$7,200.00
$1,920.00
$21,600.00
$6,000.00
$12,000.00
$2,500.00
$73,210.00
$1,000.001
GRAND TOTAL $253,288.96
$658.20
$662.28
$666.87
$665.33
$184.20
$73.00
$5,600.00
$135.00
$150.00
$120.00
$150.00
$150.00
$120.00
$1,974.60
$7,947.36
$18,005.49
$665.33
$368.40
$219.00
$5,600.00
$135.00
$34,915.18
$3,187.76
$2,400.00
$1,920.00
$2,400.00
$3,600.00
$1,920.00

Docusign Envelope ID: 3471 BBF8-DB6B-4B36-9871-28B8F112B689 32 SOLUTIONZ FIELDINSTALL_PW
16 SOLUTIONZ PROJMGMT M
16 SHURE MX418D/C
4 CLOCK AUDIO CDT100MK3-PSU
1 BIAMP TESIRA SEC-4
1 BIAMP 0447.900
1 NETGEAR NG R-GS M4230 PX-100 NAS
1 FURMAN SOUND M-8X2
1 Liberty Custom 2RU 1/0
1 GATOR CASES G-PROR-6U-19
1 SOLUTIONZ INSTALL_MATERIAL
1 1
1 1 FREIGHT
4 SOLUTIONZ DESIGN_M
4 SOLUTIONZ CADD_M
8 SOLUTIONZ PROGRAM_M
8 SOLUTIONZ TESTING_M
8 SOLUTIONZ SHOPINSTALL_M
8 SOLUTIONZ FIELDINSTALL_PW
4 SOLUTIONZ PROJMGMT_M
0 7 CRESTRON TSD-2220-B
7 CHIEF FSB018BLK
7 CRESTRON DGE-100
1 SOLUTIONZ INSTALL_MATERIAL
4 SOLUTIONZ DESIGN_M
4 SOLUTIONZ CADD_M
8 SOLUTIONZ PROGRAM_M
8 SOLUTIONZ TESTING_M
8 SOLUTIONZ SHOPINSTALL_M
8 SOLUTIONZ FIELDINSTALL_PW
4 SOLUTIONZ PROJMGMT_M
1 IEXTRON 160-1594-01
Field Installation
Project Management

REPLACE MATRIX OPTION TOTAL

TABLE DISCUSSION MIC SYSTEM
Cardioid-18" Desktop Gooseneck Condenser
Microphone, Attached 10 • XLR Cable, Logic
Functions, Progra
UDP Version (For Crestron/AMX/QSC logic control
users only) Dante Transporter for Audio and Control
Mic Input Card with AEC 4-ch
Fixed 1/0 DSP with 12 analog inputs, 8 analog outputs,
8 channels configurable USB audio, 32 x 32 ch
Netgear Switch - 24 Ports, POE+
15A Standard Power Conditioner, 9 Outlets, lRU, 6Ft
Cord
Custom 1/0 Plate - 16 XLR5f, RJ45
Pro-Series Molded Mil-Grade PE Rack Case; 6U, 19"
Deep; w/ Handle & Wheels
Misc cables, connectors, plates and hardware
Microphone Cables - 25'
Extension Cord- Power 25' 18# Black
CAT6 25' Black Patch Cord (Stranded)
Freight charges
System Design
CAD Drawing
Programming
Testing & Commissioning
Shop Installation
Field Installation
Project Management
Option Discussion Mies - Sub-Total

DAIS MONITORS & VOTING
Equipment Total

9.13% Sales Tax

21.5" HD Touch Screen Display, Black

FLAT SCREEN TABLE STAND -BLACK
Digital Graphics Engine 100
Misc cables, connectors, plates and hardware
System Design
CAD Drawing
Programming
Testing & Commissioning
Shop Installation
Field Installation
Project Management
Option Dais Monitors - Sub-Total

STREAMING/RECORDER
Equipment Total

9.13% Sales Tax
jSingle Channel H.264 Streaming Media Processor
City of Morgan Hill - Line Item
Equipment Total

9.13% Sales Tax
$150.00
$150.00
$306.41
$1,119.23
$565.00
$2,498.72
$1,680.85
$98.65
$300.00
$413.32
$850.00
$0.00
$0.00
$0.00
$135.00
$150.00
$120.00
$150.00
$150.00
$120.00
$150.00
$150.00
$1,410.26
$257.96
$1,375.00
$300.00
$150.00
$120.00
$150.00
$150.00
$120.00
$150.00
$150.00
$2,613.33 I
$4,800.00
$2,400.00
$57,542.94
$4,902.56
$4,476.92
$565.00
$2,498.72
$1,680.85
$98.65
$300.00
$413.32
$850.00
$0.00
$0.00
$0.00
$135.00
$15,921.02
$1,453.59
$600.00
$480.00
$1,200.00
$1,200.00
$960.00
$1,200.00
$600.00
$23,614.61
$9,871.82
$1,805.72
$9,625.00
$300.00
$21,602.54
$1,972.31
$600.00
$480.00
$1,200.00
$1,200.00
$960.00
$1,200.00
$600.00
$29,814.85
$2,613.33 j
$2,613.33
$238.60

Docusign Envelope ID: 3471 BBF8-DB6B-4B36-9871-28B8F112B689 I I
I
I
y g
I
Option Streaming Recorder-Sub-Total $3,451.93

PROJECTORS
Equipment Total $71,950.88

9.13% Sales Tax $6,569.12
Option Projectors - Sub-Total $80,170.00
New Power Management & UPS
Equipment Total
I I
$2,099.95

9.13% Sales Tax $191.73
Option Power Management - Sub-Total $2,291.68

UPGRADE SERVICE & SUPPORT
$8,000.00
GRAND TOTAL $458,174.95
Bond (if required) $6,927.61
Total w/Bond $465,102.56
I

Docusign Envelope ID: 3471 BBF8-DB6B-4B36-9871-28B8F112B689

EXHIBIT C

SCHEDULE OF PERFORMANCE
•May 6th-10th Contract and project set up.
•May 13th-17th Internal & External Kick off meetings
•May 20th-24th Order equipment and receive equipment delivery schedules. •May 27th-31st Schedule installation dates based on equipment delivery dates. •June 24th-28th Assumed equipment has been delivered.
•Mid -July -Aug 30th Installation 4-5 weeks
•Late-August-Beginning of September 1-Week Test, Commission, and sign off The above schedule is contingent upon:
1) Prompt execution by City of final contract, enabling Solutionz to mobilize and order equipment on a timely basis.
2) Provision by City of clean, dust-free environment suitable for installation, all prerequisite work required to be done by the City or by City's other subcontractors to be completed prior to installation.

In the event of delays caused by others, Solutionz shall be entitled to an extension of time for completion equivalent to the duration of delay.
15 Updated: April 2024

8 CITY COUNCIL STAFF REPORT
MEETING DATE: December 17, 2025
PREPARED BY:

Michael Horta, Human Resources Director
APPROVED BY: City Manager

APPROVE MEMORANDUM OF UNDERSTANDING (MOU) WITH

MORGAN HILL POLICE OFFICERS' ASSOCIATION (POA) AND

CORRESPONDING SALARY SCHEDULES, AND APPROVE

MANAGEMENT, PROFESSIONAL, AND CONFIDENTIAL EMPLOYEES

RESOLUTION AND CORRESPONDING SALARY SCHEDULES, AND

PART-TIME TEMPORARY AND SEASONAL EMPLOYEES SALARY

SCHEDULE

RECOMMENDATION(S)

1. Approve a Memorandum of Understanding (MOU) with POA effective December 21, 2025 - December 31, 2028 and corresponding salary schedules;

2. Approve the Management, Professional, and Confidential Employees Resolution effective December 21, 2025 and corresponding salary schedules; and

3. Approve the Part-Time Temporary and Seasonal Employees salary schedule effective December 21, 2025.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Maintaining and Enhancing Infrastructure
Fostering a Positive Organizational Culture
Preserving and Cultivating Public Trust
2024-2025 Strategic Priorities
Fiscal Sustainability
REPORT NARRATIVE:

The City’s negotiating team and the POA bargaining unit have reached agreement related to Memorandums of Understanding (MOU) for an additional three-year contract period. The new term for the MOU is December 21, 2025 through December 31, 2028.

The POA agreement was ratified by POA members on November 25, 2025. The agreement falls within the negotiating economic parameters given by the City Council.

These parameters were based on the “Employee Compensation Guiding Principles” that were adopted by the City Council on May 17, 2017, which included seven guiding

8 principles, including: (1) recruitment and retention, (2) fiscal sustainability, (3) compensation structure, (4) market-based compensation, (5) internal equity, (6) transparency and accountability, and (7) legal compliance.

The total compensation package offered to the bargaining unit members is competitive with that of our twelve local comparator government employers in this region and provides incentive for employees to continue employment with the City of Morgan Hill.

The compensation and benefits provided to our employees allow the City to continue to recruit and retain a quality workforce.

All provisions included in the POA MOU, which affect wages, shall be implemented on December 21, 2025.

POA
A summary of the major components of the recommended POA MOU is provided below.
• Base Salary Increases for Sworn Personnel (Police Officer, Police Corporal, Police Sergeant) and Non-Sworn Personnel (Multi-Service Officer)

3.00% effective December 21, 2025

3.00% effective December 20, 2026

2.00% effective December 19, 2027
• Specialized Pay Assignments: Increase pay by 3% effective December 21, 2025, increase pay by 3% effective December 20, 2026, and increase pay by 2% effective December 19, 2027 (per pay period):
2026 2027 2028
Police
Officer
$301.24 $310.28 $316.49
Police
Corporal
$331.36 $341.30 $348.13
Police
Sergeant
$361.49 $372.33 $379.78
• CalPERS Cost Sharing: Reduce by 1.76% for all members, except Safety (sworn) Public Employees' Pension Reform Act (PEPRA) members. Eliminate cost-sharing for Safety PEPRA members.
• Retention: Add Step G 5% increase after 10 years for sworn classifications (Police Officer, Police Corporal and Police Sergeant). The employee must have completed 10 years of service, which includes 5 years of service in the bargaining unit for the City of Morgan Hill to be eligible for the step increase. • Wellness Bank: 40 hours of use it or lose it time each fiscal year. Beginning of 2026 to be prorated January - June 2026 and end of 2028 to be prorated July - December 2028.

8 • Overtime Rate: Increase to 2 times for special events and/or scheduled to work dates that are blocked off for preferred vacation.
• Deferred Compensation: City shall contribute 2% at time of hire and an additional 1% after 5 years and an additional 1% after 10 years of an employee's base salary to a 457 deferred compensation plan per pay period. • Health: The City will contribute (monthly) to the City’s health plans up to the following monthly amounts:
2026
Employee + Family $3,047.55
Employee + 1 $2,435.99
Employee Only $1,216.72
Health-In- Lieu (waive)$610
Up to a 6% increase matching the City's contribution to the Kaiser medical premium increase in 2027 and 2028.

Management, Professional, and Confidential Employees Resolution and Corresponding Salary Schedules
The City Council considers revisions to the City’s existing Management, Professional, and Confidential Employees Resolution based on a recommendation from the City Manager. All provisions included in this Resolution which affect wages and benefits are recommended to be implemented beginning December 21, 2025. A summary of the components of the recommended Resolution is provided below:
• Salary: Employees covered by the Resolution are recommended to receive a 3% salary increase effective December 21, 2025, 2% salary increase effective December 20, 2026, and 1% effective December 19, 2027.
• CalPERS Cost Sharing: For Safety Classic, Miscellaneous Classic and Miscellaneous PEPRA employees.

Reduce by 2.00% effective December 21, 2025
Reduce by 3.00% effective December 20, 2026
Reduce by 1.12% effective December 19, 2027
Effective December 21, 2025, eliminate cost-sharing for Safety PEPRA employees. • Deferred Compensation Program: City shall contribute an additional one percent (1%) of an employee’s base salary to a 457 Deferred Compensation plan per pay period effective December 19, 2027.
• Health Benefit: The City will contribute to the City’s medical and dental plans as follows:
2026
Employee + Family $2,947.97
Employee + 1 $2,249.59

8 Employee Only $1,124.80
Health / Dental In-Lieu (waive)$610
Up to a 6% increase matching the City's contribution to the Kaiser medical premium increase in 2027 and 2028.

Holiday Pay: Those employees in Group 1-D working on a 9/80 schedule will be entitled to the number of hours regularly worked as paid time off in observance of the holidays listed. All other employees will receive additional hours equivalent to the additional vacation hours received by those working on a 9/80 schedule as floating holiday time based on the number of holidays that fall in each specific year.

Part-Time Temporary and Seasonal Employees Salary Schedule The Part-Time Temporary and Seasonal Salary Schedule has been updated to align with the increased minimum wage of $16.90 per hour which takes effect January 1, 2026.

A new position classification of Public Safety Dispatcher Trainee has been added as an entry level trainee position within the Dispatch Division. The wage would be 90% of the monthly rate for Step A of the Public Safety Dispatcher classification.

COMMUNITY ENGAGEMENT:

Inform
The Human Resources Team will post the approved POA MOU, the Management, Professional, and Confidential Employees Resolution and corresponding salary schedules, and the Part-Time Temporary and Seasonal Employees salary schedule on the Human Resources website page, as is the City’s practice for all labor agreements and salary information.

ALTERNATIVE ACTIONS:

Negotiations with represented bargaining units were conducted within the parameters set by the City Council.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

On November 15, 2023, the City Council approved a two-year POA MOU from December 24, 2023 – December 31, 2025, and corresponding salary schedules.

On November 20, 2024, the City Council approved the Management, Professional, and Confidential Employees Resolution and corresponding salary schedules.

On November 20, 2024, the City Council approved the Part-Time Temporary and Seasonal Employees salary schedule.

FISCAL AND RESOURCE IMPACT:

The fiscal impact of the POA MOU, the Management Resolution, Part-Time Temporary and Seasonal Employees salary is within the City Council’s approved parameters. For

8 the current fiscal year (2025-26), staff anticipate savings from vacancies will sufficiently cover the net cost due to the above negotiated items. Therefore, no budgetary appropriations are needed. The cost for future years will be built into the upcoming budget. For Fiscal Year (FY) 2026-27, the incremental increase to the forecast is approximately $0.4 million to the General Fund and $0.1 million to other funds due to the above negotiated items. For Fiscal Year (FY) 2027-28, the incremental increase to the forecast is approximately $0.3 million to the General Fund and $0.1 million to other funds due to the above negotiated items.

Part-Time Temporary and Seasonal Employees Salary Schedule – There is no fiscal impact to increase the minimum part-time temporary and seasonal employees’ salaries from the current California minimum wage rate of $16.50 per hour to the California new minimum wage requirement of $16.90 per hour effective January 1, 2026. The fiscal impact to increase salary ranges was known and included in the adopted budget. Future salary increases would have a fiscal impact as select positions’ salary increases fall within the new ranges.

CEQA (California Environmental Quality Act):

Not a Project - Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.

1 TERMS OF THE POLICE OFFICERS ASSOCIATION

MEMORANDUM OF UNDERSTANDING
RATIFIED 11.25.2025
Term of agreement: December 21, 2025 – December 31, 2028 - 3 years Salaries: 3.0% in Year 1, 3.0% in Year 2 and 2.0% in Year 3 Cost Sharing: Reduce by 1.76% for all members, except Sworn PEPRA members. Eliminate costsharing for Sworn PEPRA members.

Health: the City will contribute (monthly) to the City’s health plans up to the following amounts:
2026
Employee + Family $3,047.55
Employee + 1 $2,435.99
Employee Only $1,216.72
Health-In-Lieu (waive) $610.00
Up to a 6% increase matching the City’s contribution to the Kaiser medical premium increase in 2027 and 2028.

Specialized Pay Assignment: Increase pay by 3% effective December 21, 2025, increase pay by 3% effective December 20, 2026, and increase pay by 2% effective December 19, 2027 (per pay period):
2026 2027 2028
Police Officer $301.24 $310.28 $316.49
Police Corporal $331.36 $341.30 $348.13
Police Sergeant $361.49 $372.33 $379.78
Retention: Add Step G 5% increase after 10 years for sworn classifications (Police Officer, Police Corporal and Police Sergeant). Must have completed 5 years of service to be eligible for step increase.

Wellness Bank: 40 hours of use it or lose it time each fiscal year. Beginning of 2026 to be prorated January - June 2026 and end of 2028 to be prorated July - December 2028.

Overtime Rate: Increase to 2 times for special events and/or scheduled to work dates that are blocked off for preferred vacation.

Deferred Compensation: City shall contribute 2% at time of hire and an additional 1% after 5 years and an additional 1% after 10 years of an employee's base salary to a 457 deferred compensation plan per pay period.

A supplement to this staff report will be provided with a copy of the agreement language

Effective pay period December 21, 2025
%
Increase
POSITION A Monthly A Hourly B Monthly B Hourly C Monthly C Hourly D Monthly D Hourly E Monthly E Hourly F Monthly F Hourly G Monthly G Hourly

3.00% Police
Sergeant $12,846.77 $74.12 $13,489.11 $77.82 $14,163.56 $81.71 $14,871.74 $85.80 $15,615.33 $90.09 $16,396.10 $94.59 $17,215.90 $99.32

3.00% Police
Corporal $11,596.77 $66.90 $12,176.61 $70.25 $12,785.44 $73.76 $13,424.71 $77.45 $14,095.94 $81.32 $14,800.74 $85.39 $15,540.78 $89.66

3.00% Police Officer $10,774.67 $62.16 $11,313.41 $65.27 $11,879.08 $68.53 $12,473.03 $71.96 $13,096.68 $75.56 $13,751.52 $79.34 $14,439.09 $83.30

3.00% Multi-Service
Officer $8,143.83 $46.98 $8,551.02 $49.33 $8,978.57 $51.80 $9,427.50 $54.39 $9,898.87 $57.11 $10,393.82 $59.96 N/A N/A Effective pay period December 20, 2026
%
Increase
POSITION A Monthly A Hourly B Monthly B Hourly C Monthly C Hourly D Monthly D Hourly E Monthly E Hourly F Monthly F Hourly G Monthly G Hourly

3.00% Police
Sergeant $13,232.17 $76.34 $13,893.78 $80.16 $14,588.47 $84.16 $15,317.90 $88.37 $16,083.79 $92.79 $16,887.98 $97.43 $17,732.38 $102.30

3.00% Police
Corporal $11,944.67 $68.91 $12,541.91 $72.36 $13,169.00 $75.98 $13,827.45 $79.77 $14,518.82 $83.76 $15,244.76 $87.95 $16,007.00 $92.35

3.00% Police Officer $11,097.92 $64.03 $11,652.81 $67.23 $12,235.45 $70.59 $12,847.22 $74.12 $13,489.59 $77.82 $14,164.06 $81.72 $14,872.27 $85.80

3.00% Multi-Service
Officer $8,388.14 $48.39 $8,807.55 $50.81 $9,247.93 $53.35 $9,710.32 $56.02 $10,195.84 $58.82 $10,705.63 $61.76 N/A N/A Effective pay period December 19, 2027
%
Increase
POSITION A Monthly A Hourly B Monthly B Hourly C Monthly C Hourly D Monthly D Hourly E Monthly E Hourly F Monthly F Hourly G Monthly G Hourly

2.00% Police
Sergeant $13,496.82 $77.87 $14,171.66 $81.76 $14,880.24 $85.85 $15,624.25 $90.14 $16,405.47 $94.65 $17,225.74 $99.38 $18,087.03 $104.35

2.00% Police
Corporal $12,183.57 $70.29 $12,792.74 $73.80 $13,432.38 $77.49 $14,104.00 $81.37 $14,809.20 $85.44 $15,549.66 $89.71 $16,327.14 $94.20

2.00% Police Officer $11,319.87 $65.31 $11,885.87 $68.57 $12,480.16 $72.00 $13,104.17 $75.60 $13,759.38 $79.38 $14,447.35 $83.35 $15,169.71 $87.52

2.00% Multi-Service
Officer $8,555.90 $49.36 $8,983.70 $51.83 $9,432.88 $54.42 $9,904.53 $57.14 $10,399.75 $60.00 $10,919.74 $63.00 N/A N/A City of Morgan Hill Salary Schedule
Morgan Hill Police Officers' Association

RESOLUTION NO. 254-041XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF MORGAN HILL ADJUSTING THE SALARY

SCHEDULE FOR MANAGEMENT, PROFESSIONAL, AND

CONFIDENTIAL EMPLOYEES (THIS RESOLUTION
RESCINDS RESOLUTION NO. 243-04151)
WHEREAS, the City Manager has presented to the City Council of the City of Morgan Hill a recommended set of salary ranges and benefits for the Management, Professional, and Confidential employees; and
WHEREAS, the City Council of the City of Morgan Hill has reviewed said recommendations;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morgan Hill as follows:

SECTION 1 - SALARY RANGES
A. Effective June 23, 2024December 21, 2025, base salaries for Groups 1-A, 1-B, 1-C, and 1-D, are included increase by 3%. Seethe Salary Schedule attached as Exhibit A.

B. Effective the pay period including December 202, 20264, base salaries for Groups 1-A, 1-B, 1- C, and 1-D, increase by 25%, See Salary Schedule attached as Exhibit B.

B.C. Effective December 19, 2027, base salaries for Groups 1-A, 1-B, 1-C, and 1-D, increase by 1%. See Salary Schedule attached as Exhibit C.

C.D. Groups 1-A, 1-B, 1-C, and 1-D base salary ranges include the employee PERS contribution which is deducted from payroll (See SECTION 3, E-H.)
SECTION 2 - ESTABLISHMENT OF COMPENSATION AND JOB DESCRIPTIONS FOR GROUPS 1-A, 1-B, 1-C, and 1-D
A. The City Manager will establish the monthly compensation for the classifications in Group 1-A.

In order to attract high quality executive managers, foster job security within a professional climate, and provide the flexibility to remain competitive within the area job market, the City Manager has authority to enter into individual employment agreements with each executive manager; provided that the terms of the employment agreement do not exceed the total compensation permitted by this Resolution.

Employees listed in Group 1-A may receive a severance allowance as provided for in an individual employment agreement when they are separated in good standing from employment; provided that such separation is not for cause, or for reasons listed in Government Code 19572, or for any employee who voluntarily resigns from City service for personal reasons.

City of Morgan Hill
Resolution No. 25-XX

1. The City Manager shall establish an allowance amount, not to exceed six months’ salary, which is determined to be in the best interest of the city for the following executive classifications of the Group 1-A:

Assistant City Manager for Administrative Services
Assistant City Manager for Development Services
Assistant City Manager/Public Services Director
Chief of Police

2. The City Manager shall establish an allowance amount, not to exceed three months’ salary, which is determined to be in the best interest of the City for the remaining classifications of the Group 1-A.

3. This severance allowance is in addition to any unused vacation or administrative leave pay unused at the time of separation.

B. Each Department Director will recommend to the City Manager the proposed monthly salary to be paid to each of the employees whose classification appears in Group 1-B, 1-C, and 1-D.

Upon approval of the City Manager, the monthly salary will be set within the prescribed range for each classification. The City Manager has the authority to increase the monthly compensation for employees in Group 1-B, 1-C, and 1-D, by a maximum of 10% within the prescribed range each fiscal year based on each individual employee's performance.

C. The City will contribute 2% of an employee’s base salary to a City-sponsored IRS 457 deferred compensation program of the employee's choice per pay period at the time of hire, an additional one percent (1%) after 5 years of service and an additional one percent (1%) after 10 years of service. Effective December 19, 2027, all employees shall receive an additional one percent (1%) city contribution.

D. When it is proposed by the Personnel Officer that a new classification be created or an existing classification be changed, the City Manager shall submit justification for approval of that action to the City Council and if that action is approved, the City Manager will have the authority to approve new and revised job descriptions.

SECTION 3 - CONTRIBUTIONS TO THE CalPERS RETIREMENT SYSTEM, GROUPS 1-A, 1-B, 1-C, and 1-D
A. For "Classic Members" as defined by the Public Employees' Pension Reform Act of 2013 (PEPRA) and in the CalPERS retirement system:

1. Non-Safety (miscellaneous) employees listed in Groups 1-A, 1-B, 1-C, and 1-D will receive

City of Morgan Hill
Resolution No. 25-XX

CalPERS retirement benefits under the 2.5% at age 55 plan.

2. Safety (sworn) employees listed in Groups 1-A and 1-B, will receive CalPERS retirement benefits under the 3% at age 50 plan.

B. For "New Members" as defined by PEPRA and in the CalPERS retirement system:

1. Non-Safety (miscellaneous) employees listed in Groups 1-A, 1-B, 1-C, and 1-D will receive CalPERS retirement benefits under the 2.0% at 62 plan.

2. Safety (sworn) employees listed in Groups 1-A and 1-B will receive CalPERS retirement benefits under the 2.7% at age 57 plan.

C. CalPERS defines a "New Member" as:

1. A new hire who is brought into CalPERS membership for the first time on or after January 1, 2013, and who has no prior membership in any other California public retirement system.

2. A new hire who is brought into CalPERS membership for the first time on or after January 1, 2013, and who is not eligible for reciprocity with another California public retirement system.

3. A member who established CalPERS membership prior to January 1, 2013, and who is hired by a different CalPERS employer after January 1, 2013, after a break in service of greater than six months.

4. CalPERS refers to all members that do not fit the definition of a "new member" as a "classic member.”
Non-Safety (Miscellaneous)
D. Non-Safety (miscellaneous) employees: Beginning with CalPERS rates effective July 1, 2013, the City and Non-Safety (miscellaneous) Management, Professional, and Confidential employees agreed to split future employer rate increases at a 50/50 ratio. This methodology will be used in subsequent years should CalPERS increase the Miscellaneous contribution rates.

E. The Miscellaneous “Classic Members” shall contribute, in addition to the “Classic Members” rate of

8.0%, an additional 5.165% towards the “Classic Members” CalPERS contribution rate for FY 2021-

22. The total “Classic Members” employee contribution obligation shall be 13.165%.

F. The Miscellaneous “New Members” shall contribute, in addition to the “New Members” rate of

7.0%, an additional 5.165% towards the “New Members” CalPERS contribution rate for FY 2020-

21. The total “New Members” employee contribution obligation shall be 12.165%.

City of Morgan Hill
Resolution No. 25-XX

G. Effective July 1, 2022 miscellaneous employees will share the employer’s CalPERS contribution rate at 6.12%. The employee’s contribution towards employer’s share of pension cost will be capped at 6.12%. The City and employees agree to split any rate decreases below the FY 2022-23 employer’s CalPERS contribution rate of 28.77% at a 50/50 ratio.

H. Effective pay period beginning June 26, 2022 (or as soon as administratively possible with CalPERS after June 26, 2022), all miscellaneous members (Classic and PEPRA) in the Management, Professional, and Confidential Employees Resolution shall share the employer’s CalPERS contribution rate at 6.12%.

I. Effective December 21, 2025, the employee’s contribution towards employer’s share of pension cost will be reduced to 4.12%.

J. Effective December 20, 2026, the employee’s contribution towards employer’s share of pension cost will be reduced to 1.12%.

K. Effective December 19, 2027, the employee’s contribution towards employer’s share of pension cost will be eliminated.

Safety (Sworn)
L. Safety (sworn) PEPRA employees: Beginning with CalPERS rates effective July 1, 2013, at which time the City’s employer contribution PEPRA rate was 11.5%, the City and Association agreed that, beginning with CalPERS PEPRA rates effective July 1, 2013, safety (sworn) PEPRA employees would not pay less than 11.50% and would split future increases to the City’s employer PEPRA contribution rates, including both the normal cost and any unfunded actuarial liability at a 50/50 ratio. For example, the City’s employer CalPERS safety PEPRA obligation was 12.114% in FY 16-17 with the PEPRA employees’ obligation was at 11.50%.

Therefore, City paid half of the 0.614% increase over the base year City’s employer PEPRA cost of 11.50% (equal to 0.307%) and safety PEPRA employees paid the other half (also equal to 0.307%). This methodology has been used in each year subsequent to FY 2016-17 and will be used in future years should CalPERS increase the City’s employer Safety PEPRA contribution rates. The Safety PEPRA employees CalPERS contributions rate for 2021-22 shall be 14.709% (13.00% employee + 1.709% of the employer share). Effective July 1, 2023, Safety (sworn) PEPRA employees will share the employer’s CalPERS contribution rate at 1.02%.

Effective July 1, 2024, Safety (sworn) PEPRA employees will share the employer’s CalPERS contribution rate at 1.607%.

J.M. Safety (sworn) PEPRA employees: Effective December 21, 2025, the employee’s contribution towards employer’s share of pension cost will be eliminated.

N. Safety (sworn) Classic employees: Beginning December 30, 2018, the City and Safety (sworn)

City of Morgan Hill
Resolution No. 25-XX

Management, Professional, and Confidential employees agreed, Safety (sworn) Classic employees shall share the employer’s CalPERS contribution rate at 6.12%.

O. Effective December 21, 2025, the employee’s contribution towards employer’s share of pension cost will be reduced to 4.12%.

P. Effective December 20, 2026, the employee’s contribution towards employer’s share of pension cost will be reduced to 1.12%.

K.Q. Effective December 19, 2027, the employee’s contribution towards employer’s share of pension cost will be eliminated.

SECTION 4 - HEALTH CARE CONTRIBUTIONS AND IRS 125 PLAN, GROUPS 1-A, 1-B, 1- C, and 1-D
A. The City will contribute to the City’s medical and dental plans as follows:

1. For employees with family coverage, up to $2,574.54947.97/month in 20264 and up to 6% matching the Kaiser medical premium increase in 2027 and 2028$2,806.25/month in 2025.

2. For employees with employee plus one coverage, up to $1,982.322,249.59/month in 20264 and up to 6% matching the Kaiser medical premium increase in 2027 and 2028$2,141.45/month in 2025.

3. For employees with employee only coverage, up to $982.321,124.80/month in 20264 and up to 6% matching the Kaiser medical premium increase in 2027 and 2028$1,070.73/month in 2025.

4. Employees enrolling in City health but not using the maximum amount available from the City for their premium category (employee only, employee + 1, employee + family) shall not be entitled to the surplus. Employees enrolling in plans whose cost exceeds the maximum amount available from the City for their premium category shall have the difference deducted on a pre-tax basis from their paycheck.

5. Employees who waive medical coverage and annually provide proof of alternate medical coverage shall be entitled to a taxable health in lieu payment of six hundred ten dollars ($610) per month.

6. If an employee waives medical and elects dental coverage, the employee will receive the taxable health in lieu payment of six hundred ten dollars ($610) per month but will pay the appropriate dental premium.

B. The City will continue to provide coverage under the Concern Employee Assistance Program.

C. The City will continue to offer an IRS Section 125 program.

SECTION 5 - GENERAL BENEFIT PROVISIONS, GROUPS 1-A, 1-B, 1-C, AND 1-D The City will comply with the requirements of the City Personnel Rules and Regulations and

City of Morgan Hill
Resolution No. 25-XX

the Fair Labor Standards Act governing the use of taking and reporting time off work for management employees.

A. Holidays

1. The City will grant the following paid holidays to employees:
 New Year's Day
 Martin Luther King, Jr. Day
 President's Day  Cesar Chavez Day  Memorial Day  Independence Day  Labor Day  Thanksgiving Day  Day after Thanksgiving  Christmas Eve  Christmas Day
One (1) day holiday to be used during the furlough period or on the last workday before the holiday.

Two floating holidays which must be used during the fiscal year.

2. Holidays are paid at a rate of eight hours of time off; employees on alternate work schedules must use additional leave balances to receive full pay on a holiday.

3.2. 3. With the approval of the employee's supervisor, employees may "float" holidays to another day within the same fiscal year provided they work on the holiday.

4. Those employees in Group 1-D working on a 9/80 schedule will be entitled to the number of hours regularly worked as paid time off in observance of the holidays listed. All other employees will receive additional hours equivalent to the additional vacation hours received by those working on a 9/80 schedule as floating holiday time based on the number of holidays that fall in each specific year.

B. Sick Leave Accrual

1. Sick Leave credit for employees will be accumulated on the basis of eight hours of sick leave per month (96 hours per year).

2. The City will, at the end of each calendar year, pay each employee twenty-five percent

City of Morgan Hill
Resolution No. 25-XX

of the unused sick leave earned that year unless the employee requests not to receive such a payment.

3. The balance of the unused sick leave will then be accumulated on an unlimited basis.

4. Upon retirement, 100% of the employee's unused sick leave balance will be credited to the employee's retirement eligibility. This amount would then be converted into time in service and added to the employee's retirement eligibility. (Reference - City contract with CalPERS, Section 20862.8)

5. Each employee may take 16 hours of personal leave time during the fiscal year which is charged against the current year's sick leave accrual.

6. The City Manager may negotiate establishing a leave "bank" with new employees at time of hire.

C. Vacation Leave Accrual

1. Each employee will be credited vacation on the basis of 120 hours per year for the first five years of City service. After five years of service, vacation will be credited on the basis of 160 hours per year.

2. The maximum accumulation of vacation will be no more than that earned for three years annual accrual effective December 31, 2024 and two years annual accrual effective within the pay period that includes June 30July 1st in any given year., 2025. 3. Additional vacation accrual will not be provided until the employee's vacation balance drops below the maximum accrual limit as of January 1, 2025 and July 1st , 2025 in any given year.

4. The City Manager may negotiate vacation accrual rates and/or establish a leave "bank" with new employees at time of hire.

D. Administrative Leave, Groups 1-A, 1-B, and 1-C

1. Employees listed in Groups 1-A, 1-B, and 1-C receive and may use up to 72 hours of administrative leave with pay per fiscal year.

2. Administrative leave time for employees in Groups 1-A, 1-B, and 1-C will be available for one additional year if not used in the fiscal year that it was initially available. If, however, the administrative leave time that was carried over to the following fiscal year is not used during the second year, it will be lost at the end of the second fiscal year. In effect, the maximum amount of administrative leave time that may be available to an employee at any given time is 144 hours.

City of Morgan Hill
Resolution No. 25-XX

3. Effective July 1, 2016, new employees who are hired during any month other than July, will initially receive prorated administrative leave hours of six (6) hours per month depending on date of hire and the hours will be banked at time of hire (i.e. employees hired in the month of August would receive 66 hours of administrative leave because they will be working a total of eleven (11) months in the fiscal year). All regular, full-time employees will receive 72 hours of administrative leave each fiscal year following their hire date. Part-time employees have prorated benefits and their total administrative leave hours will be prorated based on their position allocation.

E. Leave Cash Out
Employees listed in Groups 1-A, 1-B, 1-C and 1-D may cash out up to 120 hours of accrued vacation, administrative leave, or a combination of the two, per calendar year.

Employees must make an irrevocable election by December 1 of each year for the following calendar year stating their intent to cash out and the eligible number of hours.

If employees do not request payment of the elected cash amount by November 1 of each year, Payroll will automatically cash out the amount designated by the employee on or after the pay period including November 1st. F. Bereavement Leave Management, Professional, and Confidential employees shall, per occurrence, be granted Bereavement Leave when a death occurs in the employee's or spouse's immediate family. For the purpose of this section, "immediate family" is defined as father, mother, brother, sister, spouse, natural or legally adopted child, step-child, grandparents, and grandchildren.

Employees are granted up to five (5) days of bereavement leave. Up to three (3) days of bereavement leave shall be granted paid when the death and service are within the State of California and the other two (2) days would need to be supplemented with other leave time. uUp to five (5) days are paid when the death or service is outside the State. City paid Bbereavement Leave usage shall not be charged against the employee's Sick Leave or Vacation Time. Employees may also use up to two (2) additional days of Sick Leave to supplement their allotted Bereavement Leave if other circumstances require absence during this time, subject to the approval of the employee’s supervisor and deducted from the employee’s other leave banks.

Special circumstances beyond this definition may be considered on a case-by-case basis and must be approved by the City Manager. This leave will not affect the twenty-five percent cash out of sick leave for the same calendar year.

G. Professional Development
It shall be the philosophy of the City to encourage employees to attend classes, seminars, conferences, etc. which will enable the employee to develop professionally. Such attendance must be approved by the Department Director or the City Manager. The City may request employees who complete such a course to report or train other employees in the skills they have attained.

City of Morgan Hill
Resolution No. 25-XX

1. Tuition Reimbursement Program
Employees are eligible to receive tuition reimbursement of up to $3,000 per fiscal year for the cost of books and tuition for classes or courses beneficial to the employee's career development. All classes must be approved in advance by the Department Director or City Manager. Reimbursement will take place upon a successful completion or passing of the course.

2. Membership Dues
For employees listed in Groups 1-A and 1-B, the City shall provide a personal membership dues reimbursement of up to $1,200 per fiscal year for costs associated with joining and participating in Morgan Hill community service organizations such as Rotary or Kiwanis. Reimbursement of membership dues for community service organizations requires the prior approval by the Department Director or the City Manager.

H. Life and Disability Insurance
The City shall pay the premiums for short-term disability, long-term disability, and life insurance plans.

1. Life insurance levels shall be as follows for the employees listed in Section 1:

Group 1-A $250,000
Group 1-B $150,000
Group 1-C $100,000
Group 1-D $100,000
This amount decreases when the employee reaches age 65, 70, and 75. The Life Insurance benefit will be paid to the employee’s beneficiary upon the death of the employee as outlined in the program documents.

2. Short-term disability coverage for employees shall be at the maximum rate of $1,384 per week based on 66⅔% of the actual weekly salary after an eight-day elimination period.

3. Long-term disability coverage for employees shall be at the maximum rate of $6,000 per month based on 66⅔% of the actual monthly salary after a 60-day elimination period.

I. Retirement Medical Plan
Upon retirement, employees may continue enrollment in the medical insurance plans provided by CalPERS without an interruption of coverage. Such enrollment will be contingent upon the employee meeting the requirements of the medical plans provided by CalPERS and paying the monthly premium to CalPERS at the employee's expense. It will be the employee's responsibility to make sure the insurance premium is paid to CalPERS before the due date.

Failure to do so will result in the employee being terminated from their medical coverage.

City of Morgan Hill
Resolution No. 25-XX

J. Special Assignment Pay
Special Assignment Pay may be granted to employees who have assumed, for an extended period, significant additional responsibilities outside their current classification. The request for special assignment shall describe the assignment, justify why it is to be performed by the designated employee, and give a specific duration for completion of the assignment with a start and end date. Special assignment pay is up to 10% above the employee’s normal pay rate. The special assignment and related compensation may be revoked at any time at the discretion of the Department Director, or the City Manager or designee. Special Assignment Pay will be requested in advance by the Department Director and authorized by the City Manager or designee, and then processed by the Human Resources Division. Special Assignment Pay shall be discontinued on the date originally identified for completion of the assignment, unless an extension of specific duration is approved by the City Manager or designee prior to the end of the original assignment end date. This pay will not be considered additional compensation as defined by the California Public Employees’ Retirement Systems (CalPERS).

K. Employee Uniform Allowance
Safety employees in Groups 1-A and 1-B will be eligible for the following uniform allowance:

Chief of Police and Police Captain: $1,400
Police Support Services Manager: $810
L. Work Schedule
The City Manager will establish the standard work schedule for employees. Based on the needs of the City, the City Manager may at his/her discretion, change the work schedules of employees at any time.

M. Auto Allowance
The City Manager may establish a monthly allowance for selected employees listed in Groups 1-A and 1-B who use their personal vehicles on City business. Based on the needs of the City, the City Manager may, at his/her discretion, change the auto allowance of employees at any time. The current monthly allowance range is $225 - $325.

N. Cell Phone Allowance
The City Manager may establish a monthly allowance for selected employees who use their personal cell phones on City business. Based on the needs of the City, the City Manager may, at his/her discretion, change the cell phone allowance of employees at any time. The current monthly allowance is established in Administrative Policy III019. O. Bilingual Pay Employees identified by the City Manager/Department Head to use another language in their work and who are certified by the process described below shall receive the following compensation:

City of Morgan Hill
Resolution No. 25-XX

a. Employees shall receive a monthly stipend of $150.
b. The Certification process shall be completed by a provided contractor by Human Resources or a 3 person panel (established by Human Resources) to determine conversational competence. Employees shall be subject to recertification every 2 years unless waived by City.
c. An eligible employee may request to be tested for bilingual certification at any time and the test shall occur within a reasonable amount of time.

SECTION 6 - EFFECTIVE DATE
This resolution shall be effective December 2217, 20254. Compensation shall be made available to only those employees covered by this section who are still employed as a Management, Professional, or Confidential employee with the City as of the effective date of this agreement.

As of the effective date of this Resolution, Resolution No. 23-05124-041 shall be superseded and rescinded.

PASSED AND ADOPTED by the City Council of Morgan Hill at a Regular Meeting held on the 20th 17th day of November December 20254 by the following vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED: ATTEST:
____________________________ ___________________________ MARK TURNER, Mayor MICHELLE BIGELOW, City Clerk
 CERTIFICATION 
I, Michelle Bigelow, City Clerk of the City of Morgan Hill, California, do hereby certify that the foregoing is a true and correct copy of Resolution No. 24-04125-XXX, adopted by the City Council at the meeting held on November 20, 2024December 17, 2025.

WITNESS MY HAND AND THE SEAL OF THE CITY OF MORGAN HILL.

City of Morgan Hill
Resolution No. 25-XX

DATE: _____________________ ___________________________________ MICHELLE BIGELOW, City Clerk

CITY OF MORGAN HILL

MANAGEMENT, PROFESSIONAL, AND CONFIDENTIAL EMPLOYEE GROUP

SALARY SCHEDULE
Job Classification
Bottom of Range
Monthly
Top of Range
Monthly
Group 1-A: Executive Management
Assistant City Manager for Administrative Services $19,479 $25,595 Assistant City Manager for Development Services $19,479 $25,595 Assistant City Manager/Public Services Director $19,479 $25,595 Chief of Police $19,479 $25,595
Community Services Director * $17,180 $22,623
Development Services Director $17,180 $22,623
Economic Development Director $17,180 $22,623
Engineering and Utilities Director * $17,180 $22,623
Finance Director $17,180 $22,623
Housing and Economic Mobility Director $17,180 $22,623
Human Resources Director $17,180 $22,623
Communications and Engagement Director* $14,825 $19,481 Information Technology Director $14,825 $19,481
Group 1-B: Middle Management Bottom Top
Police Captain $15,874 $20,857
Assistant City Attorney $14,825 $19,481
Assistant Finance Director* $14,825 $19,481
Building Official $14,825 $19,481
City Clerk/Public Information Officer $14,825 $19,481
Deputy Director for Engineering $14,825 $19,481
Deputy Director for Utilities Services $14,825 $19,481
Housing Manager* $14,825 $19,481
Planning Manager * $14,825 $19,481
Program Administrator* $14,825 $19,481
Assistant to the City Manager * $13,890 $18,221
Building Manager $13,106 $17,190
Economic Development Manager* $13,106 $17,190
Environmental Services Administrator $13,106 $17,190
Maintenance Manager $13,106 $17,190
Principal Planner $13,106 $17,190
Recreation Manager $13,106 $17,190
Senior Civil Engineer $13,106 $17,190
Senior Project Manager $13,106 $17,190
Budget Manager $12,119 $15,939
Communications and Engagement Manager * $12,119 $15,939 Community Services Manager * $12,119 $15,939
Environmental Services Manager $12,119 $15,939
Information Services Manager * $12,119 $15,939
Network Architect $12,119 $15,939
Police Support Services Manager $12,119 $15,939
Public Services Administrative Manager $12,119 $15,939
Supervising Civil Engineer $12,119 $15,939
Utility Systems Manager $12,119 $15,939
Accounting Manager * $11,281 $14,827
Financial and Policy Analyst * $11,281 $14,827
Police Administrative Manager* $11,281 $14,827
Senior Planner $11,281 $14,827
Senior Recreation Supervisor $10,730 $13,692
Community Services Supervisor $10,219 $13,040
Council Services and Records Manager * $10,219 $13,040
Deputy City Attorney $10,219 $13,040
Economic Development Coordinator $10,219 $13,040
Emergency Services Coordinator $10,219 $13,040
GIS / Land Use Data Administrator $10,219 $13,040
Maintenance Services Coordinator $10,219 $13,040
Older Adult Services Supervisor* $10,219 $13,040
Public Services Facilities Security Coordinator $10,219 $13,040 Senior Human Resources Analyst $10,219 $13,040
Risk Management Analyst (.50 FTE) $4,872 $6,392
Group 1-C: Confidential Exempt Bottom Top
Administrative Analyst $9,741 $12,782
Legal Specialist $8,764 $11,532
Group 1-D: Confidential Non-Exempt Bottom Top
Accounting Technician $7,990 $10,197
Human Resources Technician $7,771 $10,197
Human Resources Assistant * $6,086 $7,960
Effective: December 21, 2025 * Currently Unfunded Positions Exhibit A

CITY OF MORGAN HILL

MANAGEMENT, PROFESSIONAL, AND CONFIDENTIAL EMPLOYEE GROUP

SALARY SCHEDULE
Job Classification
Bottom of Range
Monthly
Top of Range
Monthly
Group 1-A: Executive Management
Assistant City Manager for Administrative Services $19,869 $26,107 Assistant City Manager for Development Services $19,869 $26,107 Assistant City Manager/Public Services Director $19,869 $26,107 Chief of Police $19,869 $26,107
Community Services Director * $17,524 $23,075
Development Services Director $17,524 $23,075
Economic Development Director $17,524 $23,075
Engineering and Utilities Director * $17,524 $23,075
Finance Director $17,524 $23,075
Housing and Economic Mobility Director $17,524 $23,075
Human Resources Director $17,524 $23,075
Communications and Engagement Director* $15,121 $19,870 Information Technology Director $15,121 $19,870
Group 1-B: Middle Management Bottom Top
Police Captain $16,192 $21,274
Assistant City Attorney $15,121 $19,870
Assistant Finance Director* $15,121 $19,870
Building Official $15,121 $19,870
City Clerk/Public Information Officer $15,121 $19,870
Deputy Director for Engineering $15,121 $19,870
Deputy Director for Utilities Services $15,121 $19,870
Housing Manager* $15,121 $19,870
Planning Manager * $15,121 $19,870
Program Administrator* $15,121 $19,870
Assistant to the City Manager * $14,168 $18,586
Building Manager $13,368 $17,534
Economic Development Manager* $13,368 $17,534
Environmental Services Administrator $13,368 $17,534
Maintenance Manager $13,368 $17,534
Principal Planner $13,368 $17,534
Recreation Manager $13,368 $17,534
Senior Civil Engineer $13,368 $17,534
Senior Project Manager $13,368 $17,534
Budget Manager $12,361 $16,258
Communications and Engagement Manager * $12,361 $16,258 Community Services Manager * $12,361 $16,258
Environmental Services Manager $12,361 $16,258
Information Services Manager * $12,361 $16,258
Network Architect $12,361 $16,258
Police Support Services Manager $12,361 $16,258
Public Services Administrative Manager $12,361 $16,258
Supervising Civil Engineer $12,361 $16,258
Utility Systems Manager $12,361 $16,258
Accounting Manager * $11,506 $15,124
Financial and Policy Analyst * $11,506 $15,124
Police Administrative Manager* $11,506 $15,124
Senior Planner $11,506 $15,124
Senior Recreation Supervisor $10,945 $13,965
Community Services Supervisor $10,423 $13,301
Council Services and Records Manager * $10,423 $13,301
Deputy City Attorney $10,423 $13,301
Economic Development Coordinator $10,423 $13,301
Emergency Services Coordinator $10,423 $13,301
GIS / Land Use Data Administrator $10,423 $13,301
Maintenance Services Coordinator $10,423 $13,301
Older Adult Services Supervisor* $10,423 $13,301
Public Services Facilities Security Coordinator $10,423 $13,301 Senior Human Resources Analyst $10,423 $13,301
Risk Management Analyst (.50 FTE) $4,969 $6,520
Group 1-C: Confidential Exempt Bottom Top
Administrative Analyst $9,936 $13,038
Legal Specialist $8,940 $11,762
Group 1-D: Confidential Non-Exempt Bottom Top
Accounting Technician $8,150 $10,401
Human Resources Technician $7,926 $10,401
Human Resources Assistant * $6,207 $8,120
Effective: December 20, 2026 * Currently Unfunded Positions Exhibit B

CITY OF MORGAN HILL

MANAGEMENT, PROFESSIONAL, AND CONFIDENTIAL EMPLOYEE GROUP

SALARY SCHEDULE
Job Classification
Bottom of Range
Monthly
Top of Range
Monthly
Group 1-A: Executive Management
Assistant City Manager for Administrative Services $20,067 $26,368 Assistant City Manager for Development Services $20,067 $26,368 Assistant City Manager/Public Services Director $20,067 $26,368 Chief of Police $20,067 $26,368
Community Services Director * $17,699 $23,306
Development Services Director $17,699 $23,306
Economic Development Director $17,699 $23,306
Engineering and Utilities Director * $17,699 $23,306
Finance Director $17,699 $23,306
Housing and Economic Mobility Director $17,699 $23,306
Human Resources Director $17,699 $23,306
Communications and Engagement Director* $15,273 $20,069 Information Technology Director $15,273 $20,069
Group 1-B: Middle Management Bottom Top
Police Captain $16,354 $21,487
Assistant City Attorney $15,273 $20,069
Assistant Finance Director* $15,273 $20,069
Building Official $15,273 $20,069
City Clerk/Public Information Officer $15,273 $20,069
Deputy Director for Engineering $15,273 $20,069
Deputy Director for Utilities Services $15,273 $20,069
Housing Manager* $15,273 $20,069
Planning Manager * $15,273 $20,069
Program Administrator* $15,273 $20,069
Assistant to the City Manager * $14,310 $18,772
Building Manager $13,501 $17,709
Economic Development Manager* $13,501 $17,709
Environmental Services Administrator $13,501 $17,709
Maintenance Manager $13,501 $17,709
Principal Planner $13,501 $17,709
Recreation Manager $13,501 $17,709
Senior Civil Engineer $13,501 $17,709
Senior Project Manager $13,501 $17,709
Budget Manager $12,485 $16,420
Communications and Engagement Manager * $12,485 $16,420 Community Services Manager * $12,485 $16,420
Environmental Services Manager $12,485 $16,420
Information Services Manager * $12,485 $16,420
Network Architect $12,485 $16,420
Police Support Services Manager $12,485 $16,420
Public Services Administrative Manager $12,485 $16,420
Supervising Civil Engineer $12,485 $16,420
Utility Systems Manager $12,485 $16,420
Accounting Manager * $11,621 $15,275
Financial and Policy Analyst * $11,621 $15,275
Police Administrative Manager* $11,621 $15,275
Senior Planner $11,621 $15,275
Senior Recreation Supervisor $11,054 $14,105
Community Services Supervisor $10,528 $13,434
Council Services and Records Manager * $10,528 $13,434
Deputy City Attorney $10,528 $13,434
Economic Development Coordinator $10,528 $13,434
Emergency Services Coordinator $10,528 $13,434
GIS / Land Use Data Administrator $10,528 $13,434
Maintenance Services Coordinator $10,528 $13,434
Older Adult Services Supervisor* $10,528 $13,434
Public Services Facilities Security Coordinator $10,528 $13,434 Senior Human Resources Analyst $10,528 $13,434
Risk Management Analyst (.50 FTE) $5,019 $6,585
Group 1-C: Confidential Exempt Bottom Top
Administrative Analyst $10,035 $13,168
Legal Specialist $9,029 $11,880
Group 1-D: Confidential Non-Exempt Bottom Top
Accounting Technician $8,231 $10,505
Human Resources Technician $8,005 $10,505
Human Resources Assistant * $6,269 $8,201
Effective: December 19, 2027 * Currently Unfunded Positions Exhibit C

CITY OF MORGAN HILL

PART-TIME TEMPORARY AND SEASONAL EMPLOYEES SALARY SCHEDULE Salaries effective December 212, 20254
CLASSIFICATIONS Bottom Step
Hourly
Top Step
Hourly

INTERNS
High School Work Experience Student $16.950 $20.00
Intern – College/Grad School $18.00 $35.00

POLICE DEPARTMENT
Level I Reserve Police Officer Hourly rate for Step A Police Officer Level II Reserve Police Officer 90% of hourly rate for Step A Police Officer Per Diem Dispatcher Hourly rate for Public Safety Dispatcher Police Cadet – High School $16.950 $18.00
Police Cadet –College (Fresh/Soph) $18.00 $20.00
Police Cadet – College (Jr./Senior) $20.00 $25.00
Police Officer Trainee 90% of monthly rate for Step A Police Officer Public Safety Dispatcher Trainee 90% of monthly rate for Step A Public Safety Dispatcher
Reserve Officer Trainee $16.950

TEMPORARY AND SEASONAL
Administrative Specialist $22.00 $35.00
Building Coordinator $22.00 $27.00
Clerical Assistant $19.00 $26.00
Communications Technician $16.950 $32.00
Deck Coordinator $24.00 $32.00
Environmental Services Specialist $20.00 $35.00
Facility Maintenance Assistant $20.00 $35.00
Fire Plans Examiner/Inspector $35.50 $45.00
GIS Analyst $30.00 $40.00
Government Access Technician $20.00 $30.00
Lifeguard $17.50 $25.00
Lifeguard - Lead $22.00 $28.00
Maintenance Worker Assistant $18.00 $28.00
Recreation Instructor $16.950 $52.50
$52.50 Recreation Leader $17.00 $25.00
Recreation Specialist $22.00 $35.00
Retired Annuitant $20.00 $115.00
Senior Recreation Leader $20.00 $26.00

City of Morgan Hill

Special Projects Coordinator $18.00 $50.00
Swim Instructor $18.00 $26.00
Swim Instructor - Lead $22.00 $27.00
Welcome Desk Coordinator $22.00 $27.00
Welcome Desk Representative $17.00 $25.00
Other Part-Time Temporary or Seasonal positions may be tied to the Salary Schedule forthe Bargaining Units which are not listed above. The above list only includes those part-time and temporary positions which are frequently used or are not contained on a bargaining unit salary schedule.

9 CITY COUNCIL STAFF REPORT
MEETING DATE: December 17, 2025
PREPARED BY:

Cynthia Iwanaga, Management Analyst
APPROVED BY: City Manager

AWARD LANDSCAPE MAINTENANCE SERVICE AGREEMENT TO

MEDALLION LANDSCAPE MANAGEMENT, LLC FOR CITY PARKS

MOWING, STREET MEDIANS, AND DOWNTOWN

RECOMMENDATION(S)

1. Award a Maintenance Service Agreement to Medallion Landscape Management, LLC in the amount of $379,392 for an initial two-year term ($189,696 annually) to service Group 1: Park Mowing at City Parks; Group 3: Street Medians, Streetscapes, and Parking Lots; and Group 6: Downtown Area; and extra services;

2. Authorize the City Manager to extend the service agreement up to an additional three years subject to future annual budget appropriations by the City Council for a total term of five years; and

3. Authorize the City Manager to execute and administer said Agreement.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety
Protecting the Environment and Preserving Open Space and Agricultural Land 2024-2025 Strategic Priorities
Fiscal Sustainability
REPORT NARRATIVE:

The purpose of this report is to provide the City Council with an opportunity to award a landscape maintenance service agreement to Medallion Landscape Management, LLC in the not-to-exceed amount of $379,392 during the initial two-year term, and authorize the City Manager to execute and administer the agreement. Services provided under this agreement include mowing and edging of City parks; complete landscape maintenance of street medians, streetscapes, parking lots, City facilities, and Downtown (parking lots, train station, and parks); and extra services which may include addressing vandalism or various repairs.

The City has contracted with professional landscape firms for various landscape

9 maintenance services for many years as an approach to cost effectively serve the City.

The work is divided into six separate groups as a way to diversify the City's bidding opportunities. This Request for Proposals (RFP) was released for Group 1 (Parks Mowing and Edging), Group 3 (Street Medians, Streetscapes, Parking Lots, and Miscellaneous City Facilities), and Group 6 (Downtown).

The City's current maintenance service agreement expires on December 31, 2025. A Request for Proposals (RFP) was released on September 22, 2025. In soliciting proposals for this agreement, the City advertised in the Morgan Hill Times on September 19, 2025. The RFP was posted on the City website, Public Purchase, Builders' Exchange of Santa Clara County, Bay Area Builders' Exchange, San Francisco Builders' Exchange, Central Coast Builders' Association, and Dodge & Data Analytics. Contractors registered on the City's Informal Bidders List with the required Contractor State Licensing Board (CSLB) license C-27 (Landscape Contractor) were also notified of the RFP. The RFP and addendum can be viewed on the City website via the following links: RFP and Addendum 1
Eight (8) proposals were received on October 31, 2025. One proposal (K & D Landscaping's) was deemed incomplete, and the vendor withdrew the proposal. The seven remaining proposals were reviewed in a two-step process. The seven remaining proposals were from Bayscape Management, Inc.; Brightview Landscape Services; Landscape Pros ML Inc.; Medallion Landscape Management, LLC; New Image Landscape Company; Terracare Associates; and Velasco Landscaping. Proposals were first evaluated based on narrative responses to questions. They were scored for previous work experience, work quality, references, staff qualifications, and communication systems. A total of 40 points were available for the narrative responses to questions.

Proposals receiving a minimum 30 out of 40 points were then evaluated based on weighted averages for each firm's pricing for Group 1, Group 3, Group 6, average hourly rates, and percentage (%) mark-up. Four (4) of the seven (7) proposals scored the minimum 30 points in the narrative section, and their cost schedules were then evaluated in the second step of the review process. The four cost proposals evaluated were Bayscape Management, Inc.; Brightview Landscape Services; Medallion Landscape Management, LLC; and Terracare Associates.

Based on the narrative responses and the weighted cost proposal scoring, Medallion Landscape Management, LLC scored the highest points at 88.6 points. A detailed scoring summary is included as Attachment 1, and a summary of these scores is below:

Landscape Contractor Total Score
Medallion Landscape
Management, LLC

88.6 points
Brightview Landscape 81.2 points

9 Services
Terracare Associates 79.9 points
Bayscape Management, Inc. 60.0 points
The highest scoring landscape contractor, Medallion Landscape Management, has over 30 years of experience in the San Francisco Bay Area serving clients with accounts that are similar in size and scope to what is required for the City of Morgan Hill. Other current customers include the California Water Service (Cal Water) and the Alameda County Water District.

Staff recommends the award of the landscape maintenance service agreement to Medallion Landscape Management, LLC for the not-to-exceed amount of $379,392 for the initial two-year term, which is $189,696 per year (Attachment 2). The annual amount of $189,696 includes a base amount of $159,696 for scheduled services and up to $30,000 in extra services such as repairs, irrigation valve replacements, and the rejuvenation of landscape areas. The agreement specifies that extra services are only to be provided with the prior approval of the City's Maintenance Manager or a designee.

The new agreement would have an initial two-year term from January 1, 2026 to December 31, 2027 with authorization for the City Manager to execute three consecutive one-year extensions and increase the maximum compensation during the extended terms, subject to future annual budget appropriations by the City Council. The amendment amount may not exceed 105% of the previous year's annual amount.

COMMUNITY ENGAGEMENT:

Inform
As landscape maintenance services are a regular and expected City service, no efforts were made to inform the community about this proposed agreement. The actual landscape maintenance work resulting from this agreement is shared via City communication tools, including "The Scoop," a weekly maintenance activities update on the City website, and Nextdoor Morgan Hill. Signs will be posted when landscape maintenance services are performed that will effect or impair access to the street or public sidewalks.

ALTERNATIVE ACTIONS:

An alternative action would be to not approve this agreement, however, this is not recommended as it would jeopardize ongoing landscape maintenance and safety.

PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

The City Council awarded the prior landscape maintenance service agreement for Groups 1, 3, and 6 on November 16, 2022. No prior action has been taken on this agreement.

FISCAL AND RESOURCE IMPACT:

The funding for landscape maintenance services is included in many areas of the City's

9 operating budget (Fund 010-General Fund) including Street Maintenance, Park Maintenance, and Downtown Maintenance and in the Landscape Assessment Districts.

CEQA (California Environmental Quality Act):

Categorical Exemption
The activities described in this Staff Report are categorically exempt under CEQA, specifically pursuant to Section 15301 (c) of the CEQA Guidelines (Existing Facilities), as the subject work involves the repair, maintenance or minor alteration of existing City facilities involving negligible or no expansion of use of those facilities.

City of Morgan Hill: 2025 Landscape Maintenance Groups 1, 3 and 6 RFP Scoring Summary `

NARRATIVE SCORING
1 2 3 4 5 6 7

NARRATIVE
Points
Available
Bayscape
Management
Brightview
Landscape
Landscape
Pros**
Medallion
Landscape
New Image
Landscape**
Terracare
Associates
Velasco
Landscape**

15.0 13.0 12.3 9.3 12.5 10.3 13.2 11.0

10.0 9.0 7.0 7.2 10.2 6.3 8.0 7.0
Qualifications of Staff to be assigned to provide landscape maintenance services 5.0 4.0 4.0 3.0 4.0 3.2 3.7 2.8

10.0 8.2 7.0 5.3 8.0 7.7 9.0 6.7
SUBTOTAL- NARRATIVE POINTS 40.0 34.2 30.3 24.8 34.7 27.5 33.8 27.5 **=Did not score minimum 30 out of 40 points on narrative COST PROPOSAL 1 2 3 4 5 6 7 COST PROPOSAL SCORING
Item
Price from Lowest
Bidder
Bayscape
Management
Brightview
Landscape Landscape Pros**
Medallion
Landscape
New Image
Landscape**
Terracare
Associates
Velasco
Landscape**
Points
Available
Bayscape
Management
Brightview
Landscape
Landscape
Pros**
Medallion
Landscape
New Image
Landscape**
Terracare
Associates
Velasco
Landscape**
Group 1 Total Bid 42,180.00 103,400.00 51,060.00 49,920.00 42,180.00 20.0 8.2 16.5 16.9 20.0 Group 3 Total Bid 59,892.00 137,960.00 78,753.00 59,892.00 116,120.00 20.0 8.7 15.2 20.0 10.3 Group 6 Total Bid 40,185.00 96,800.00 40,185.00 49,884.00 45,532.50 15.0 6.2 15.0 12.1 13.2 Average of Extra Work Hourly
Rates 65.00 100.36 93.53 65.00 128.75 3.0 1.9 2.1 3.0 1.5 % Material Mark-Up Over Costs 10.00 25.00 10.00 10.00 20.00 2.0 0.8 2.0 2.0 1.0 SUBTOTAL-PRICING POINTS 60.0 25.8 50.8 54.0 46.1
GRAND TOTAL 100.0 60.0 81.2 88.6 79.9
4 2 1 3
Assessment of Work Quality, Performance and Working Relationships with Clients that indicate high levels of satisfaction and effectiveness Previous Experience providing a superior level of landscape maintenance services at like-sized facilities w/similar scopes of work
Organized Communication Systems and reporting capabilities that demonstrate efficiency and effectiveness

1 Updated: August 2024

MAINTENANCE SERVICE AGREEMENT
Medallion Landscape Management, LLC
THIS AGREEMENT is entered into and becomes effective on _______________ (Effective Date), by and between the CITY OF MORGAN HILL, a municipal corporation, ("CITY"), and Medallion Landscape Management, LLC a California limited liability company ("SERVICE PROVIDER") hereinafter referred to collectively as “Parties.” In consideration of the promises and the mutual covenants contained in this Agreement, the Parties agree as follows:

1. City Authority. This Agreement is entered into pursuant to the action of the Morgan Hill City Council taken on ___________, ____, 20___.

2. Term of Agreement. This Agreement shall cover services rendered from the Effective Date of this Agreement until December 31, 2027 at which time SERVICE PROVIDER’S services shall be completed. The City Manager is authorized to extend the term of this Agreement for a maximum of three one-year extensions. Any such extension shall be in writing and signed by both Parties to this Agreement.

3. Scope of Service. The services to be performed by SERVICE PROVIDER shall be landscape maintenance services for groups 1, 3 & 6 as further described in Exhibit A.

4. Compensation. SERVICE PROVIDER shall be compensated as follows:

4.1. Amount. $379,392.00. Total compensation to SERVICE PROVIDER under this Agreement during its initial term set forth in Section 2 above shall not exceed Three Hundred Seventy-Nine Thousand Three Hundred Ninety-Two dollars and shall be billed based on the rate and basis set forth in Exhibit B. If the City Manager extends the term of this Agreement pursuant to the provisions of Section 2 above, the City Manager shall have the authority to increase the maximum compensation allowed to be paid to SERVICE PROVIDER during that extended term period, so long as City Council has appropriated sufficient funds therefor, the Parties mutually agree to such amount in a writing signed by both Parties to this Agreement and provided further that in no event shall such maximum compensation allowed for each subsequent extended one-year term exceed 105% of the maximum compensation allowed to be paid to SERVICE PROVIDER for one year of service during the immediately preceding prior year of service.

4.2. Billing. SERVICE PROVIDER shall provide CITY with an invoice containing the dated, detailed, and itemized descriptions of all services performed and expenses incurred (if such expenses are reimbursable pursuant to Exhibit B) by SERVICE PROVIDER on a monthly basis unless otherwise specified in Exhibit B. All invoices shall be sent to the CITY addressed to the department head or project manager identified below in Section 14 Notices. Payment will be made to SERVICE PROVIDER within thirty (30) days of receipt of invoice by CITY. Any rate charged shall be prorated where services are interrupted or not provided for any rate period (for example, any monthly rate charge should be prorated when services were interrupted or provided for only part of the month). For services billed on an hourly rate, the minimum unit of billed time shall not exceed one tenth of one hour. CITY shall pay for services and expenses (if so provided in Exhibit B) up to the limit of compensation set forth above, that in the CITY’S judgment were necessary and reasonable. Services for work performed and expenses incurred in excess of the total compensation set forth in paragraph 4.1 above shall be at no cost to CITY.

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5. Termination. CITY or SERVICE PROVIDER shall have the right to terminate this Agreement, without cause, by giving thirty (30) days' written notice or less under urgent circumstances. Upon such termination, SERVICE PROVIDER shall submit to CITY an itemized statement of services performed for which compensation has not been paid. CITY may require SERVICE PROVIDER to complete certain work product or documents and SERVICE PROVIDER shall deliver to CITY all documents in its possession without additional compensation to SERVICE PROVIDER. The City Manager is authorized to terminate this Agreement, in whole or in part, on behalf of CITY.

5.1. Non-Appropriations. Notwithstanding anything contained in this Agreement to the contrary, if insufficient funds are appropriated, or funds are otherwise unavailable in the budget for CITY for any reason whatsoever in any fiscal year, for payments due under this Agreement, CITY will immediately notify SERVICE PROVIDER of such occurrence, and this Agreement shall terminate after the last day during the fiscal year for which appropriations shall have been budgeted for CITY or are otherwise available for payments.

5.2. Temporary Suspension of Services. CITY’S need for services may be suspended due to unforeseeable or unavoidable circumstances beyond its control. Such circumstances include, but are not limited to, earthquake, fire, explosion, flood, or other natural catastrophe; governmental legislation, condemnation, acts, orders, or regulation; war or acts of terrorism; strikes or labor difficulties; and quarantine, epidemic, or pandemic.

CITY shall provide a 5-days’ written notice or less under urgent circumstances to temporarily suspend services at specific CITY facilities. CITY reserves the right to request which CITY facilities are to be serviced or not serviced due to unforeseeable or unavoidable circumstances; and the level of service at each CITY facility. Upon suspension, SERVICE PROVIDER shall submit to CITY an itemized statement of services performed for which compensation has not been paid up to the date of the suspension. No further payments will be made for services provided after the date of the suspension. CITY shall provide 5 days’ written notice when the circumstances for the suspension of specific facilities’ services are removed for SERVICE PROVIDER to commence providing services.

6. Performance of Work. SERVICE PROVIDER represents that it is qualified by virtue of experience, training, education, and expertise to accomplish these services. Services shall be performed by SERVICE PROVIDER in accordance with professional practices in a manner consistent with a level of care, competence and skill exercised by qualified members of SERVICE PROVIDER’S profession. By delivery of completed work, SERVICE PROVIDER certifies that the work conforms to the requirements of this Agreement and all applicable federal, state, and local laws. SERVICE PROVIDER is liable for any property damage caused by SERVICE PROVIDER or its Subcontractors during performance of the services and shall notify the CITY of damage within 24 hours of the occurrence. SERVICE PROVIDER must promptly repair or replace any real or personal property damage, and must promptly restore the property to its original or intended condition. CITY may repair or replace the real or personal property damage if SERVICE PROVIDER fails to do so, and the cost of the repairs or replacement may be deducted or offset from any compensation due to SERVICE PROVIDER.

6.1. Schedule. SERVICE PROVIDER shall perform all work and services under this Agreement in conformance with the time schedule set forth on Exhibit C, "Schedule of Performance," attached hereto and incorporated herein by this reference. The City Manager is authorized on behalf of CITY to modify the timeframes set forth on the Schedule of Performance within the term of this Agreement.

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6.2. Storage of Service Provider’s Equipment. If SERVICE PROVIDER desires to leave or store any of SERVICE PROVIDER'S equipment at a CITY site while SERVICE PROVIDER is performing work or service pursuant to this Agreement, SERVICE PROVIDER will first obtain the consent of the City Manager, or his/her delegate, to do so, and any such storage shall occur only in the manner and location allowed by such CITY official and entirely at SERVICE PROVIDER'S sole risk.

7. Hazardous Materials. Without limiting any other requirement or obligation of SERVICE PROVIDER under this Agreement, if SERVICE PROVIDER needs to use any material or chemical considered to be a hazardous material under any federal, state, or local law, regulation or policy, SERVICE PROVIDER agrees to fully and timely abide by and comply with all laws, regulations and policies pertaining to the use, transport, removal, handling, disposal, or other activity related to any and all such materials or chemicals. Prior to commencement of work or services under this Agreement, SERVICE PROVIDER shall provide CITY with a complete list of the hazardous materials SERVICE PROVIDER reasonably anticipates it may need to use to provide the services of SERVICE PROVIDER under this Agreement, together with the reasonably anticipated quantities thereof, if requested by CITY.

8. Insurance Requirements. SERVICE PROVIDER shall procure and provide proof of the insurance coverage required by this section in the form of certificates and endorsements. The required insurance must cover the activities of SERVICE PROVIDER, including its subcontractors, employees, and agents, relating to, or arising from, the performance of any work or service under this Agreement, and must remain in full force and effect at all times during the period covered by this Agreement. The coverages may be arranged under a single policy for the full limits required or by a combination of underlying policies with the balance provided by excess or “umbrella” policies, provided each such policy complies with the requirements set forth herein. Any deductibles or self-insured retentions must be declared to and approved by City. SERVICE PROVIDER further understands that CITY reserves the right to modify the insurance requirements set forth herein, with thirty (30) days’ notice provided to SERVICE PROVIDER, at any time as deemed necessary to protect the interests of CITY.

8.1. Insurance Types and Amounts.

8.1.1. Commercial General Liability (CGL). SERVICE PROVIDER shall maintain CGL against claims and liabilities for personal injury, death, or property damage providing protection in the minimum amount of: (i) one million dollars ($1,000,000.00) combined single limit for any one accident or occurrence, or (ii) the maximum amount of such insurance available to SERVICE PROVIDER under SERVICE PROVIDER’S combined insurance policies (including any excess or “umbrella” policies), whichever is greater.

8.1.2. Automobile Liability. SERVICE PROVIDER shall maintain Automobile Liability covering all owned, non-owned and hired automobiles (if SERVICE PROVIDER does not own automobiles, then SERVICE PROVIDER shall maintain Hired/Nonowned Automobile Liability) against claims and liabilities for personal injury, death, or property damage providing protection in the minimum amount of: (i) one million dollars ($1,000,000.00) combined single limit for any one accident or occurrence, or (ii) the maximum amount of such insurance available to SERVICE PROVIDER under SERVICE PROVIDER'S combined insurance policies (including any excess or “umbrella” policies), whichever is greater.

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8.1.3. Workers’ Compensation Insurance and Employer’s Liability. SERVICE PROVIDER shall maintain Workers Compensation coverage, as required by law, in the minimum amount of: (i) one million dollars ($1,000,000.00) for any one accident or occurrence, or (ii) the maximum amount of such insurance available to SERVICE PROVIDER under SERVICE PROVIDER'S combined insurance policies (including any excess or “umbrella” policies), whichever is greater. If SERVICE PROVIDER is self-insured, SERVICE PROVIDER shall provide its Certificate of Permission to Self-Insure, duly authorized by the Department of Industrial Relations.

8.1.4. Pollution (Environmental) Liability. If the performance of SERVICE PROVIDER’S work or service under this Agreement involves hazardous materials, contaminated soil disposal, and/or a risk of accidental release of fuel oil, chemicals or other toxic gases or hazardous materials, SERVICE PROVIDER shall procure and maintain Pollution Liability covering the SERVICE PROVIDER’S liability for bodily injury, property damage and environmental damage resulting from pollution and related cleanup costs arising out of the work or services to be performed under this Agreement. Coverage shall be provided for both work performed on site, as well as during the transport of hazardous materials. Such coverage shall be in the minimum amount of: (i) one million dollars ($1,000,000.00) for any one accident or occurrence, or (ii) the maximum amount of such insurance available to SERVICE PROVIDER under SERVICE PROVIDER'S combined insurance policies (including any excess or “umbrella” policies), whichever is greater.

8.1.5. Professional Liability.

8.1.5.1. If the performance of SERVICE PROVIDER’S work or service under this Agreement involves professional and/or technical services (examples include, but are not limited to, architects, engineers, land surveyors, and appraisers), SERVICE PROVIDER shall procure and maintain either a claims made or occurrence Errors and Omission liability insurance in the minimum amount of: (i) one million dollars ($1,000,000.00) each claim, or (ii) the maximum amount of such insurance available to SERVICE PROVIDER under SERVICE PROVIDER'S combined insurance policies (including any excess or “umbrella” policies), whichever is greater. Further, if SERVICE PROVIDER maintains a claims-made policy, SERVICE PROVIDER shall provide written evidence of such insurance to CITY for at least five (5) years after the completion of work performed under this Agreement.

8.1.5.2. If the performance of SERVICE PROVIDER’S work or service under this Agreement relates to Information Technology or related services (examples include, but are not limited to computer programmers, software designers, hardware engineers, or other systems consultants), SERVICE PROVIDER shall procure and maintain a claims made Errors and Omission liability insurance, including Cyber Liability and Data Breach, in the minimum amount of: (i) one million dollars ($1,000,000.00) each claim, or (ii) the maximum amount of such insurance available to SERVICE PROVIDER under SERVICE PROVIDER'S combined insurance policies (including any excess or “umbrella” policies), whichever is greater.

5 Updated: August 2024

8.1.6. Sexual Abuse/Molestation Liability (SML): If the performance of SERVICE PROVIDER'S work or service under this Agreement involves contact with minors, SERVICE PROVIDER shall procure and maintain Sexual Abuse and Molestation insurance in the minimum amount of: (i) two hundred thousand dollars ($200,000.00) each claim, or (ii) the maximum amount of such insurance available to SERVICE PROVIDER under SERVICE PROVIDER'S combined insurance policies (including any excess or “umbrella” policies), whichever is greater.

8.2. Endorsements. SERVICE PROVIDER shall provide proof of the following endorsements, listed for each policy for which endorsements are required, as outlined below:

8.2.1. General Liability and pollution liability (when pollution liability applies).

8.2.1.1. “Additionally Insured” - The City of Morgan Hill, its elected or appointed officials, boards, agencies, officers, agents, employees, and volunteers are named as additional insureds on a form at least as broad as ISO Form CG 20 10 for ongoing operations.

8.2.1.2. “Waiver of Rights of Subrogation” - The insurer waives the right of subrogation against the City of Morgan Hill and CITY’S elected or appointed officials, boards, agencies, officers, agents, employees, and volunteers; and

8.2.1.3. “Primary and Non-Contributing” - Insurance shall be endorsed to be primary and non-contributory and will not seek contribution from the City’s insurance or self-insurance and shall be at least as broad as ISO Form CG 20

01. 8.2.2. Workers Compensation.

If the performance of SERVICE PROVIDER’S work or service under this Agreement involves access to or activity on any property or premises owned or occupied by the CITY, including, but not limited to, SERVICE PROVIDER’S presence during site visits and meetings, then insurer waives the right of subrogation against the City of Morgan Hill and the CITY’S elected or appointed officials, boards, agencies, officers, agents, employees, and volunteers.

8.3. Qualification of Insurers. All insurance required pursuant to this Agreement must be issued by a company licensed and admitted, or otherwise legally authorized to carry out insurance business in the State of California, and each insurer must have a current A.M.

Best's financial strength rating of “A” or better and a financial size rating of “VII” or better.

8.4. Certificates. SERVICE PROVIDER shall furnish CITY with copies of all certificates as outlined herein, whether new or modified, promptly upon receipt. In the event of a claim or legal action, SERVICE PROVIDER shall promptly furnish CITY of Morgan Hill with copies of all policies outlined herein. No policy subject to SERVICE PROVIDER’S agreement with CITY shall be canceled or materially changed except after thirty (30) days' notice by the insurer to CITY. A "material change" is a change that results in noncompliance with any insurance requirements in this section 8. Certificates, including renewal certificates, may be mailed electronically to [email protected] or delivered to the Certificate Holder address provided herein.

6 Updated: August 2024
Certificate Holder address:

City of Morgan Hill
Attn: Risk Management
17575 Peak Avenue
Morgan Hill, CA 95037

9. Non-Liability of Officials and Employees of CITY. No official or employee of CITY shall be personally liable for any default or liability under this Agreement.

10. Compliance with Law.

10.1. SERVICE PROVIDER and its officers, employees, agents, and subcontractors shall comply with all applicable laws, ordinances, administrative regulations, and permitting requirements in carrying out their obligations under this Agreement. SERVICE PROVIDER and its officers, employees, agents, and subcontractors covenant there shall be no discrimination based upon any basis prohibited by State or Federal law, including but not limited to, race, color, creed, religion, gender, marital status, age, sexual orientation, national origin, mental disability, physical disability, medical condition, or ancestry, in any activity pursuant to this Agreement.

10.2. Without limiting the provisions of Section 10.1 above, each worker performing work under this Agreement shall be paid at a rate not less than the prevailing wage as defined in Sections 1771 and 1774 of the Labor Code. The prevailing wage rates are available online at http://www.dir.ca.gov/dlsr. SERVICE PROVIDER shall post a copy of the applicable prevailing rates at the Worksite.

10.2.1. Pursuant to Labor Code Section 1775, SERVICE PROVIDER and any subcontractor shall forfeit to CITY as a penalty up to two hundred dollars ($200.00) for each calendar day, or portion thereof, for each worker paid less than the applicable prevailing wage rate. SERVICE PROVIDER shall also pay each worker the difference between the applicable prevailing wage rate and the amount actually paid to that worker.

10.2.2. SERVICE PROVIDER must comply with the provisions of Labor Code Sections 1776 and 1812 and all implementing regulations, which are fully incorporated by this reference, including requirements for electronic submission of payroll records.

10.2.3. As applicable, if the Agreement Amount exceeds Thirty Thousand Dollars ($30,000.00), SERVICE PROVIDER is responsible for compliance with the requirements governing employment and payment of apprentices, as set forth in Labor Code Section 1777.5, which is fully incorporated by reference.

10.2.4. SERVICE PROVIDER must comply with the provisions of Labor Code Section 1815 with respect to payment of overtime.

10.2.5. Under Labor Code Section 1813, SERVICE PROVIDER will forfeit to CITY as a penalty, the sum of Twenty-Five Dollars ($25.00) for each day during which a worker employed by SERVICE PROVIDER or any subcontractor is required or permitted to work more than eight (8) hours in any one (1) calendar day or more

7 Updated: August 2024
than forty (40) hours per calendar week, except if such workers are paid overtime under Labor Code Section 1815.

10.3. DIR Registration. CITY will not accept a Bid Proposal from or enter into a contract with a SERVICE PROVIDER, without first receiving proof to the satisfaction of CITY that SERVICE PROVIDER and its subcontractors are registered with the California Department of Industrial Relations to perform public work under Labor Code Section 1725.5, subject to limited legal exceptions. Under Labor Code section 1771.4, this Agreement is subject to compliance monitoring and enforcement by the California Department of Industrial Relations.

10.4. Compliance with Wage and Hour Laws. SERVICE PROVIDER, and any subcontractor it employs to complete work under this Agreement, shall comply with all applicable federal, state, and local wage and hour laws. Applicable laws may include, but are not limited to, the Federal Fair Labor Standards Act and the California Labor Code.

Final Judgments, Decisions, and Orders: For purposes of this Section, a “final judgment, decision, or order” refers to one for which all appeals have been exhausted or the time to appeal has expired. Relevant investigatory government agencies include: the federal Department of Labor, the California Division of Labor Standards Enforcement, or any other governmental entity or division tasked with the investigation and enforcement of wage and hour laws.

Prior Judgments against SERVICE PROVIDER and/or its Subcontractors: BY SIGNING

THIS AGREEMENT, SERVICE PROVIDER AFFIRMS THAT IT HAS DISCLOSED ANY

FINAL JUDGMENTS, DECISIONS OR ORDERS FROM A COURT OR
INVESTIGATORY GOVERNMENT AGENCY FINDING – IN THE FIVE (5) YEARS PRIOR TO EXECUTING THIS AGREEMENT – THAT SERVICE PROVIDER OR ITS SUBCONTRACTOR(S) HAS VIOLATED ANY APPLICABLE WAGE AND HOUR LAWS.

SERVICE PROVIDER FURTHER AFFIRMS THAT IT OR ITS SUBCONTRACTOR(S) HAS SATISFIED AND COMPLIED WITH – OR HAS REACHED AGREEMENT WITH THE CITY REGARDING THE MANNER IN WHICH IT WILL SATISFY – ANY SUCH JUDGMENTS, DECISIONS OR ORDERS.

Judgments or Decisions During Term of Contract: If at any time during the term of this Agreement, a court or investigatory government agency issues a final judgment, decision or order finding that SERVICE PROVIDER or any subcontractor it employs to perform work under this Agreement has violated any applicable wage and hour law, or SERVICE PROVIDER learns of such a judgment, decision, or order that was not previously disclosed, SERVICE PROVIDER shall inform the City Attorney, no more than fifteen (15) days after the judgment, decision or order becomes final or of learning of the final judgment, decision or order. SERVICE PROVIDER and its subcontractors shall promptly satisfy and comply with any such judgment, decision, or order, and shall provide the City Attorney with documentary evidence of compliance with the final judgment, decision, or order within five (5) days of satisfying the final judgment, decision, or order. CITY reserves the right to require SERVICE PROVIDER to enter into an agreement with CITY regarding the manner in which any such final judgment, decision, or order will be satisfied.

City’s Right to Withhold Payment: Where SERVICE PROVIDER or any subcontractor it employs to perform work under this Agreement has been found in violation of any applicable wage and hour law by a final judgment, decision or order of a court or

8 Updated: August 2024
government agency, CITY reserves the right to withhold payment to SERVICE PROVIDER until such judgment, decision or order has been satisfied in full.

Material Breach: Failure to comply with any part of this Section constitutes a material breach of this Agreement. Such breach may serve as a basis for immediate termination of this Agreement and/or any other remedies available under this Agreement and/or law.

Notice to City Related to Wage Theft Prevention: Notice provided to the City Attorney as required under this Section shall be addressed to: City Attorney, City of Morgan Hill, 17575 Peak Avenue, Morgan Hill, CA 95037. The Notice provisions of this Section are separate from any other notice provisions in this Agreement and, accordingly, only notice provided to the above address satisfies the notice requirements in this Section.

11. Independent Contractor. SERVICE PROVIDER is an independent contractor and not an agent or employee of CITY.

12. Confidentiality. All data, documents, or other information received by SERVICE PROVIDER from CITY or prepared in connection with SERVICE PROVIDER’S services under this Agreement are deemed confidential and shall not be disclosed to any third party by SERVICE PROVIDER without prior written consent by CITY.

13. Conflict of Interest and Reporting. SERVICE PROVIDER shall at all times avoid conflict of interest or appearance of conflict of interest in performance of this Agreement including, without limitation, complying with California Government Code section 1090 et seq., the California Political Reform Act (California Government Code section 87100 et seq.) and the regulations of the Fair Political Practices Commission concerning disclosure and disqualification (2 California Code of Regulations section 18700 et seq.). SERVICE PROVIDER will further comply, and will ensure that its agents and its subcontractors comply, with California Government Code section 84308 (“Levine Act”) and the applicable regulations of the Fair Political Practices Commission concerning campaign disclosure (2 California Code of Regulations sections 18438.1 – 18438.8).

14. Notices. All notices shall be personally delivered or mailed, via first class mail to the below listed address. These addresses shall be used for delivery of service of process. Notices shall be effective five (5) days after date of mailing, or upon date of personal delivery.

Address of SERVICE PROVIDER is as follows:

Medallion Landscape Management, LLC
10 San Bruno Avenue
Morgan Hill, CA 95037
Address of CITY is as follows:

Keri Russell, Maint. Mgr.

City of Morgan Hill
17575 Peak Avenue
Morgan Hill, CA 95037
with a copy to:

City Clerk
City of Morgan Hill
17575 Peak Avenue
Morgan Hill, CA 95037

15. Licenses, Permits and Fees. SERVICE PROVIDER shall obtain a City of Morgan Hill Business License, all permits and licenses to the extent required by ordinances, codes, and regulations of the federal, state, and local government.

9 Updated: August 2024

16. Service Provider’s Proposal. If applicable, this Agreement shall include SERVICE PROVIDER'S proposal or bid which is incorporated herein. In the event of any inconsistency between the terms of the proposal and this Agreement, this Agreement shall govern.

17. Maintenance of Records.

17.1. Maintenance. SERVICE PROVIDER shall prepare, maintain, and preserve all reports and records that may be required by federal, state, and CITY rules and ordinances related to services provided under this Agreement. SERVICE PROVIDER shall maintain records for a period of at least 3 years after receipt of final payment under this Agreement. If any litigation, claim, negotiation, audit exception, or other action relating to this Agreement is pending at the end of the 3-year period, then SERVICE PROVIDER shall retain said records until such action is resolved.

17.2. Access to and Audit of Records. CITY shall have the right to examine, monitor and audit all records, documents, conditions, and activities of SERVICE PROVIDER and its subcontractors related to services under this Agreement. Pursuant to Government Code Section 8546.7, if this Agreement involves the expenditure of public funds in excess of $10,000, the Parties to this Agreement may be subject, at the request of CITY or as part of any audit of CITY, to the examination and audit of the State Auditor pertaining to matters connected with the performance of this Agreement for a period of three years after final payment under the Agreement.

17.3. Ownership of Work Product. All documents or other information developed or received by SERVICE PROVIDER for work performed under this Agreement shall be the property of CITY. SERVICE PROVIDER shall provide CITY with copies of these items upon demand or upon termination of this Agreement.

18. Familiarity with Work. By executing this Agreement, SERVICE PROVIDER represents that:
(1) it has investigated the work to be performed; (2) it has investigated the site of the work and is aware of all conditions there; and (3) it understands the difficulties and restrictions of the work under this Agreement. Should SERVICE PROVIDER discover any conditions materially differing from those inherent in the work or as represented by CITY, it shall immediately inform CITY and shall not proceed, except at SERVICE PROVIDER'S risk, until written instructions are received from CITY.

19. Time of Essence. Time is of the essence in the performance of this Agreement.

20. No Assignment. Neither this Agreement nor any portion shall be assigned by SERVICE PROVIDER, without prior written consent of CITY. Any attempted assignment not first approved by CITY shall be void and, at CITY'S option, shall terminate this Agreement effective as of the date of such attempted assignment.

21. Attorney Fees. In any legal action, dispute or arbitration arising out of or relating to this Agreement, the prevailing party shall be entitled to an award of its reasonable attorney fees, costs and expenses incurred.

22. Defense and Indemnification.

22.1. Defense and Indemnification. SERVICE PROVIDER shall, to the fullest extent permitted by law, indemnify, defend and hold harmless CITY, its elected or appointed officials, boards, agencies, officers, agents, employees, and volunteers (“INDEMNITEES”) from and against any and all claims, liabilities, expenses, liens, or damages of any nature, including liability for bodily

10 Updated: August 2024
injury, property damage or personal injury, and including reasonable attorneys' fees and expenses, that arise out of, pertain to, or relate to the performance of this Agreement or the failure to comply with any obligations contained in this Agreement by SERVICE PROVIDER, and/or its agents, officers, employees, subcontractors, or independent contractors (“CLAIM”).

22.2. Exceptions. SERVICE PROVIDER is not required to indemnify INDEMNITEES against liability for bodily injury, property damage or personal injury, or any other loss, damage or expense arising from the sole negligence or willful misconduct of CITY.

22.3. Not limited by insurance. The indemnity, defense and hold harmless provisions of this Agreement apply to all CLAIMS alleged against an INDEMNITEE, regardless of whether any insurance policies are applicable. Policy limits do not act as a limitation upon the amount of indemnification or defense to be provided by SERVICE PROVIDER.

22.4. Right to Offset. CITY shall have the right to offset against any compensation due SERVICE PROVIDER under this Agreement any amount due CITY from SERVICE PROVIDER as a result of SERVICE PROVIDER'S failure to pay CITY promptly any indemnification arising under this Section (22) and any amount due CITY from SERVICE PROVIDER arising from SERVICE PROVIDER'S failure either to (i) pay taxes on amounts received pursuant to this Agreement or (ii) comply with applicable workers' compensation laws.

22.5. Interpretation. This Section shall constitute an agreement or contract of indemnity, incorporating the interpretations under California Civil Code Section 2778. It is expressly understood and agreed that the obligation of SERVICE PROVIDER to indemnify the INDEMNITEE shall be as broad and inclusive as permitted by the laws of the State of California and shall survive termination of this Agreement.

23. Entire Agreement; Modification; Conflicting Provisions. This Agreement constitutes the entire Agreement between the Parties and supersedes any previous agreements, oral or written. This Agreement may be modified or provisions waived only by a subsequent mutual written agreement executed by CITY and SERVICE PROVIDER. If the provisions contained in the main body of this Agreement conflict with any provision contained in an exhibit to this Agreement, the provisions of the main body of this Agreement shall govern and control over any provision contained in an exhibit to this Agreement.

24. Governing Law and Venue. This Agreement shall be construed in accordance with the laws of the State of California. This Agreement was entered into and is to be performed in the County of Santa Clara. Any action or dispute arising out of this Agreement shall only be brought in Santa Clara County.

25. Notice of Security and/or Privacy Incident. If SERVICE PROVIDER, or its subconsultant, suspect, discover or are notified of a data security incident or potential breach of security and/or privacy relating to CITY PII, PHI and/or PCI, SERVICE PROVIDER shall immediately, but in no event later than forty-eight (48) hours from suspicion, discovery or notification of the incident or potential breach, notify CITY of such incident or potential breach. SERVICE PROVIDER shall, upon CITY’s request, investigate such incident or potential breach, inform the CITY of the results of any such investigation, and assist the CITY in maintaining the confidentiality of such information. In addition to the foregoing, SERVICE PROVIDER shall provide CITY with any assistance necessary to comply with any state and/or federal laws requiring the provision of notice of any privacy incident or security breach with respect to any CITY PII, PHI and/or PCI to the affected or impacted individuals and/or organizations, in addition to any notification to applicable state and federal agencies. SERVICE PROVIDER agrees that it shall reimburse CITY for all expenses, costs, attorneys’ fees, and resulting fines, penalties, and damages associated with such incident, breach, investigation and/or notification.

11 Updated: August 2024

26. Interpretation. This Agreement is a negotiated document and shall be deemed to have been drafted jointly by the Parties, and no rule of construction or interpretation shall apply against any particular Party based on a contention that the Agreement was drafted by one of the Parties including, but not limited to, California Civil Code § 1654, the provisions of which are hereby waived. This Agreement shall be construed and interpreted in a neutral manner.

27. Preservation of Agreement. If any term, provision, covenant, or condition of this Agreement is held by a court of competent jurisdiction to be invalid or unenforceable, the rest of the Agreement shall remain in full force and effect and shall in no way be affected or invalidated.

28. Binding Agreement. Notwithstanding the provisions of Section 20 above, this Agreement shall bind any and all successors in interest, legal representatives and/or other permitted assignees or transferees of SERVICE PROVIDER in the same manner as if those successors in interest, legal representatives or other permitted assignees or transferees had entered into this Agreement originally.

29. Electronic Signatures. Unless otherwise prohibited by law or CITY policy, the Parties agree that an electronic copy of a signed contract, or an electronically signed contract, has the same force and legal effect as a contract executed with an original ink signature. The term “electronic copy of a signed contract” refers to a transmission by facsimile, electronic mail, or other electronic means of a copy of an original signed contract in a portable document format. The term “electronically signed contract” means a contract that is executed by applying an electronic signature using technology approved by the CITY.

30. Counterpart Signatures. This Agreement may be signed in multiple counterparts, which shall, when executed by all the parties, constitute a single binding agreement.

Signatures on the following page.

12 Updated: August 2024

31. Authority to Execute. Those individuals who are signing this Agreement on behalf of entities represent and warrant that they are, respectively, duly authorized to sign on behalf of the entities and to bind the entities fully to each and all of the obligations set forth in this Agreement.

IN WITNESS THEREOF, these Parties have executed this Agreement on the day and year shown below.

AS SET FORTH IN CA. CORP. CODE § 313, TWO SIGNATURES ARE REQUIRED FOR CALIFORNIA CORPORATIONS:
(1) CHAIRPERSON OF THE BOARD, PRESIDENT, OR VICE PRESIDENT; AND (2) SECRETARY, ASSISTANT SECRETARY, CHIEF FINANCIAL OFFICER OR ASSISTANT TREASURER.

ATTEST: CITY OF MORGAN HILL
City Clerk/Deputy City Clerk City Manager
Michelle Bigelow Christina J. Turner
Print Name Print Name
Date: Date:

APPROVED AS TO FORM: MEDALLION LANDSCAPE MANAGEMENT,
LLC
City Attorney By:

Donald A. Larkin
Print Name
Date:

Print Name and Title of Signer.

If Corporate: Chairman, President or
Vice President
Date:

By:

Date:

Print Name and Title of Signer.

If Corporate: Secretary, Assistant
Secretary, Chief Financial Officer or
Assistant Treasurer
713234 1001118453
Contractor’s License Number(s) (if applicable) Contractor’s DIR Registration Number(s) (if applicable) Expiration Date(s) 09/30/2027 Expiration Date(s) 06/30/2026 U:\Legal Forms\Consultant Agreements\City Maintenance Service Agreement.Docx Sumin Wu CFO
11/19/2025
Raitis Raisian, CEO
11/21/25

13 Updated: August 2024

EXHIBIT A

SCOPE OF SERVICES
Please see next page for attached Scope of Work and Specifications.

EXHIBIT A
Scope of Work and Special Provisions
LANDSCAPE MAINTENANCE SERVICES (GROUPS 1, 3, & 6)

CITY OF MORGAN HILL PARKS MOWING, MEDIANS, STREETSCAPE, PARKING LOTS,

DOWNTOWN, AND MISCELLANEOUS LANDSCAPING

TABLE OF CONTENTS
SECTION 2.1: INFORMATION FOR SERVICE PROVIDERS

2.1-1 SCOPE AND LOCATION OF WORK

2.1-2 ADDITIONAL AND EXTRA WORK; MARK-UP

2.1-3 CHANGES IN AGREEMENT PRICE

2.1-4 OUTCOME-BASED AGREEMENT AND INSPECTION PROBLEM RESOLUTION PROCESS

2.1-5 INSPECTION OF SITE WORK
SECTION 2.2: GENERAL CONDITIONS

2.2-1 NORMAL HOURS AND DAYS OF MAINTENANCE SERVICES

2.2-2 PERIODIC PROJECT INSPECTIONS

2.2-3 PERFORMANCE DURING INCLEMENT WEATHER

2.2-4 NOTICE TO PROCEED

2.2-5 ACCEPTANCE

2.2-6 LICENSES REQUIRED FOR DURATION OF AGREEMENT

2.2-7 SAFETY

2.2-8 RESPONSE

2.2-9 QUALIFIED SERVICE PROVIDER SUPERVISION

2.2-10 SERVICE PROVIDER'S EMPLOYEES

2.2-11 EMPLOYER PROVIDED UNIFORMS

2.2-12 SERVICE PROVIDER'S EQUIPMENT

2.2-13 LOCKS AND KEYS

2.2-14 VANDALISM AND ACCIDENTAL DAMAGE

2.2-15 WATER MANAGEMENT PROGRAM

2.2-16 PLANT LOSS

2.2-17 TURF AERATION

2.2-18 FERTILIZATION

2.2-19 BARK AND MULCH

2.2-20 TREE PRUNING

2.2-21 MOWING AND EDGING

2.2-22 REFUSE DISPOSAL

2.2-23 TRAFFIC CONTROL

2.2-24 FINGERPRINTING AND BACKGROUND CHECKS
SECTION 2.3: LOCATIONS AND SERVICES REQUIRED

2.3-1 GROUP 1 – PARK MOWING AND EDGING

2.3-2 GROUP 3 – MEDIAN, STREETSCAPE, PARKING LOT & MISC. FACILITY LANDSCAPE

MAINTENANCE

2.3-3 GROUP 6 – DOWNTOWN

2.3-4 EXTRA WORK
SECTION 2.4: ATTACHMENTS

1. MORGAN HILL LANDSCAPE STANDARDS

2. MORGAN HILL LANDSCAPE INSPECTION RATING FORM

3. SITE MAPS – GROUP 1 : (Provided to Service Provider in Request for Proposals)

4. SITE MAPS – GROUP 3 : (Provided to Service Provider in Request for Proposals)

5. SITE MAPS – GROUP 6 : (Provided to Service Provider in Request for Proposals)

6. INTEGRATED PEST MANAGEMENT (IPM) PLAN: (Provided to Service Provider in Request for Proposals)

Section 2.1:

2.1-1 SCOPE AND LOCATION OF WORK
This Landscape Maintenance Service Agreement ("Agreement") is an outcome-based Agreement where the City has established specific landscape standards as outcomes. The City will inspect the work of the Service Provider against the stated standards to determine compliance and payment.

The work to be performed under the Agreement consists of the furnishing of all labor, insurance, materials, and equipment needed for complete landscape maintenance services in the following service groups:

Group 1 Parks Mowing and Edging
Group 3 Medians, Streetscape, Parking Lots & Miscellaneous Facility Landscape Maintenance Group 6 Downtown
Extra Work All Locations

2.1-2 ADDITIONAL AND EXTRA WORK
City has the authority to direct additional and extra work including, but not limited to, work for vandalism, City initiated improvements, various repair and maintenance functions, and the addition of new sites with the understanding that the Service Provider is entitled to additional compensation.

Additional and extra work outside the Scope of Services will require written approval from City prior to the commencement of work. Costs for additional work completed by the Service Provider prior to receiving written approval from the City shall be the responsibility of the Service Provider.

2.1-3 CHANGES IN AGREEMENT PRICE
The value of any work covered by an amendment or of any claim for increase or decrease in the Agreement Price shall be determined by one or more of the following methods in the order of precedence listed below:

A. Unit pricing previously approved.

B. An agreed upon lump sum.

Unless an amendment has been so executed, it shall be conclusively presumed that all work performed is included in the Agreement Price.

The City recognizes the inherent complexity of "maintenance", "standards", and building an agreement that covers every potential scenario. Below is a list of additional items that the City will deem as "extra work". Items may be added or deleted through the negotiation process.

The following shall be treated as "extra work”:

Renovations (thatching, over seedings, drainage installation, irrigation upgrades, etc.) Landscape Conversions
Fence Repair
Repair of significant vandalism

Extra Services hourly rates, equipment costs, and % markups are listed in Exhibit B – Schedule of Compensation

2.1-4 OUTCOME-BASED AGREEMENT AND INSPECTION PROBLEM RESOLUTION PROCESS City will regularly inspect the Service Provider’s work and rate it according to the landscape maintenance standards attached as Attachment 1. Service Provider shall operate and maintain an e-mail address at which the City may send inspection reports largely consisting of photos taken of areas that the Service Provider maintains. The e-mail address must have sufficient capacity to accept numerous inspection reports from the City without delay or rejection.

The Service Provider will be paid for work rated as "meets standards". Service Provider will not be paid for work rated as "below standard" until conditions improve and rate as "meet standards" if the below standard work is attributed to neglect on the part of the Service Provider. If an area does not meet City standards, it will be considered "below standard". Service Provider will not be paid additional amounts for remedial work required to improve "below standard" areas if the below standard work is attributed to neglect on the part of the Service Provider. City staff will work closely with Service Provider's representatives to achieve the results described in the standards and inspection criteria. However, responsibility for meeting standards rests with the Service Provider.

The Service Provider shall be responsible for maintaining landscapes as described in this document and per the maintenance standards outlined in Attachment 1. The cost of maintaining the areas shall be included in the base bid amount unless otherwise called out as "extra work” in the Scope of Work.

During the first three (3) months of the Agreement, the Service Provider will receive one hundred percent (100%) of the monthly Agreement payment. During this period, Service Provider will inspect the sites at least monthly and will discuss inspections with City. This process and time frame will allow the Service Provider time to become familiar with the individual locations. Following this period, the Service Provider shall perform quality assurance inspections a minimum of every month, or more frequently if deemed necessary by the Service Provider.

The Service Provider will provide electronic versions of the monthly inspections to the City by the 10th of the following month as to each site's compliance with City standards. An action plan with deadlines must be provided to the City to indicate when corrections will be made if an area is deemed "below standard". Failure to turn in inspections by the deadline will result in a monthly payment being withheld until inspections are turned in, and one-hundred-dollar ($100) deduction from their monthly payment.

There will be a financial impact to the Agreement if any scheduled use, (including, but not limited to, special events or recreation programs) of City facilities are impacted by neglect on the Service Provider's part. Any costs associated with re-scheduling the event/activity/program may be the responsibility of the Service Provider for staffing and costs, including, but not limited to lost revenue, staff salaries and alternate Service Provider costs, etc.

The City will perform weekly inspection reports, which will be e-mailed to the Service Provider. The first time a site fails to meet City Standards as a result of these inspections the Service Provider will have two (2) weeks to bring the site back into compliance. For Group 6 – Downtown, the Service Provider will have one (1) week to bring the site back into compliance. If the same site is not in compliance for the

same standard at any time after the first warning, no warning will be given, and penalties will be incurred. If a site is not brought back into compliance within the allotted timeframe the following penalties will occur:

1. First Penalty: Service Provider to receive warning.

2. Second Penalty: At the same site within twelve (12) months of the First Penalty Assessment, the Service Provider will be assessed a $35 monthly deduction per deficiency.

3. Third Penalty: At the same site within (12) months of the First Penalty Assessment, the Service Provider will be assessed a $85 monthly deduction per deficiency.

The parties will observe the following progressive problem resolution process:

1. Written notice of the problem.

2. Field conference with City inspector and Service Provider’s field representative to identify problem and agree on solution as presented by Service Provider.

3. Conference between City's representative and Service Provider's principal.

4. Imposition of penalties and/or correcting defect at Service Provider's cost.

5. Termination of Agreement.

2.1-5 INSPECTION OF SITE WORK
Service Providers are required to inspect the site of the work in order to satisfy themselves, by personal examination or by such other means as they may prefer, of the location of the proposed work and the actual conditions of and at the site. Service Providers may apply to the City for additional information and explanation before submitting proposals. However, no supplemental information requested or furnished shall vary the terms of the Agreement Documents or affect the Service Provider's sole responsibility to satisfy itself as to the conditions of the work to be performed. No claim for additional compensation will be allowed, which is based upon a lack of knowledge of the actual conditions or location of the work.

Submission of a proposal by a Service Provider shall constitute acknowledgment that the Service Provider has relied, and is relying, on its own examination of: (a) the site of the work; (b) access to the site; (c) all other data, matters, and things requisite to the fulfillment of the work and, on his/her own knowledge of existing facilities on and in the vicinity of the site of the work and not on any representation or warranty of the lack of knowledge of the above items.

Section 2.2: General Conditions

2.2-1 NORMAL HOURS AND DAYS OF MAINTENANCE SERVICES
A. For the Third Street Creek Park and Nob Hill Trail Park work hours shall be every Monday and Thursday between 7:00am and 5:00 pm.

B. At all other locations, the Service Provider shall perform the required maintenance services between the hours of 7:00 a.m. and 5:00 pm Monday through Friday and on weekends with prior City approval.

C. The Service Provider shall conduct the work at all times in a manner which will not interfere with normal recreation programs, school programs, pedestrian traffic on adjacent sidewalks, or vehicular traffic on adjacent streets.

D. Any modification in the hours and days of maintenance services as stated in the Service Provider's service schedule is subject to approval by the City.

2.2-2 PERIODIC PROJECT INSPECTIONS
Upon request, the Service Provider will walk the project with the City's representative to determine and confirm compliance with the specifications or to discuss required work. The Service Provider's representative must be authorized to sign documents and make changes to the work.

2.2-3 PERFORMANCE DURING INCLEMENT WEATHER
During periods of excessive rainfall that hinders normal operations, the Service Provider shall adjust its workforce to accomplish those activities that are not affected by weather. The prime factors in assigning work shall be the safety of the workforce and damage to parks, landscaping and neighboring properties.

2.2-4 NOTICE TO PROCEED
As soon as practical after execution of the Agreement, and after receipt of acceptable insurance certificates by City, a written Notice to Proceed will be emailed to the Service Provider. The effective date of the Notice to Proceed will be the date stated as such in the Notice, provided that the effective date will not be earlier than the day following the issuance of the Notice to Proceed.

2.2-5 ACCEPTANCE
A. Acceptance by the City of any services furnished under the Agreement shall occur only subsequent to the final review of authorized employees of the City.

B. The City shall reject and refuse to pay for any and all non-conforming services.

C. Nothing in this section shall limit or restrict the warranty and remedy obligations of the Service Provider specified in the Standard Maintenance Service Agreement.

2.2-6 LICENSES REQUIRED FOR DURATION OF AGREEMENT
• C-27 Landscape Service Provider License
• City of Morgan Hill Business License
• Qualified Applicator License (includes Santa Clara County Registration) • Registered with the California Dept. of Industrial Relations as a Public Works Contractor (PWC)

2.2-7 SAFETY
Safety provisions shall conform to Cal-OSHA Safety Orders, and all other applicable federal, state, county, and local laws, ordinances, codes, and regulations in performing the work under this Agreement.

Where any of these are in conflict, the more stringent requirement shall be followed. The Service Provider's failure to thoroughly familiarize themselves with the aforementioned safety provisions shall not relieve them from compliance with the obligations and penalties set forth therein.

The Service Provider shall develop and maintain for the duration of the Agreement, a safety program that will effectively incorporate and implement all required safety provisions. The Service Provider shall appoint an employee who is qualified and authorized to supervise and enforce compliance with the safety program.

2.2-8 RESPONSE
Supervision shall be immediately available at all times when Service Provider employees are working on sites, must be available from 7:00 am to 10:00 pm each day via telephone, and must respond to an emergency situation/major discrepancy in the Agreement within two (2) hours of initial contact.

2.2-9 QUALIFIED SERVICE PROVIDER SUPERVISION
All of Service Provider's supervisors must be qualified, proficient in English, trained and capable of providing adequate supervision and direction to all Service Providers’ employees and must demonstrate verbal and written communication skills sufficient for the work required herein.

2.2-10 SERVICE PROVIDER'S EMPLOYEES
Only Service Provider's employees or subcontractors are allowed on City premises where work is being performed. The City shall have the right to have Service Provider remove from assignment to City facilities such Service Provider and/or subcontractors’ employees as shall be deemed incompetent, careless, insubordinate, or in any way objectionable, or any personnel whose actions may be contrary to the public interest or inconsistent with the best interest of the City. Service Provider's employees and subcontractors shall not smoke tobacco on any City property.

2.2-11 EMPLOYER PROVIDED UNIFORMS
The Service Provider shall provide each of its employees with uniforms. Uniform apparel shall be kept neat, clean, and in good repair. All uniforms shall include the Service Provider's name and logo. Service Provider and subcontractor personnel shall wear uniforms at all times.

2.2-12 SERVICE PROVIDER'S EQUIPMENT
The on-site supervisor shall ensure that all Service Provider-supplied equipment is in good working order. Any damaged equipment or equipment in need of repair shall be removed from the site. Service Provider shall be responsible for any damage to the work sites, City or private property, or any injuries caused by Service Provider's equipment or personnel.

2.2-13 LOCKS AND KEYS

The Service Provider shall be responsible for the series of keys assigned to it and shall assign these keys to its personnel for use in maintaining the facilities. The Service Provider shall properly use and keep safe all keys or locks issued by the City to the Service Provider.

The Service Provider shall report all lost or stolen keys or locks to the City within twenty-four (24) hours of discovery. The Service Provider shall reimburse the City for the total cost of replacement keys and/or locks that have been lost.

Upon termination or cancellation of the Agreement, the Service Provider shall immediately return all keys, cards, remotes, etc., to the City. The Service Provider shall reimburse the City for the total cost of lost items.

2.2-14 VANDALISM AND ACCIDENTAL DAMAGE
City assumes responsibility for the cost of repairing or replacing appurtenances significantly damaged by persons other than the Service Provider or its agents. Vandalism or accidental damage repair costs shall be based on unit costs submitted by Service Provider in the proposal or on time and materials quotes for work not called out in the proposal. Service Provider shall be responsible for reporting damage to City and repairing or replacing all appurtenances damaged by Service Provider or Service Provider's agents.

2.2-15 WATER MANAGEMENT PROGRAM
City utilizes an online water management software and mobile application for the battery controllers.

Service Provider will be provided access to this software as an additional tool for oversight, scheduling, and irrigation management in conjunction to physical inspections. All battery operated controllers must be managed at the location directly. The City reserves the right to request from the Landscape Maintenance Service Provider a report of irrigation controller settings for the current month in electronic format. This report will include the following information:

A. All irrigation programs are set on controllers.

B. lrrigation schedule start times for each irrigation program.

C. lrrigation run days for each irrigation program.

D. lrrigation cycle length, in minutes for each station in an irrigation program.

E. Number of repeat cycles for each station in an irrigation program.

All required scheduling and operation of the automatic irrigation controllers reflecting weather changes and water needs will be covered under this Agreement. Service Provider shall make all adjustments and setting of automatic controllers to establish frequency and length of watering periods. Any malfunction of controllers must be reported to the City along with a proposal for correction with costs.

All systems shall be programmed as needed to maintain plants in a healthy, vigorous condition. The irrigation controller program is to be sufficient to keep the plant material healthy without excessive water use.

A. Controller programs shall incorporate the following conditions: Meet City Water Management requirements
B. Program around Park and Facility use and events

C. Reflect actual evapotranspiration (E.T.) requirements D. Reflect actual requirements of soil and plants
E. Eliminate runoff onto streets, sidewalks, and other non-target areas The Water Management Program is designed to optimize park and landscape water usage through field testing and irrigation schedule development. Soil moisture levels can be compared to irrigation schedules and plant water requirements to assist in responsible management of each park and landscape irrigation valve zone.

A. lrrigation Schedule Analysis:

The Service Provider should be prepared to provide the City with the current month's irrigation schedules and monthly report on the required system check within the 10th day of the month. The irrigation schedules are analyzed by comparing the minutes of irrigation run time, plant water requirement and the level of environmental demand (evapotranspiration). Valve areas appearing to be over or underwatered are to be further tested by the Service Provider as outlined below.

B. Soil Moisture Testing:

Valve areas suspected to be over or underwatered should be tested by the Service Provider by removing a soil sample and testing the moisture content. Soil probing is conducted to determine soil moisture levels for automated overhead irrigation circuits.

C. lrrigation Base Schedule Development:

A monthly irrigation base schedule is developed based upon current controller settings and the feedback of moisture probing results. Adjustments are made at the controller either up or down where soil is found to be too dry or too wet. Once the Service Provider has the correct run times for any given month, the starting "base schedule" is acquired. Adjustments to the "base schedule" shall occur throughout the month to accommodate changes in area use and/or environmental changes to individual sites.

D. Drought Impact on Irrigation:

The Service Provider shall comply with all water use regulations and restrictions. In addition, Service Provider shall comply with City directed changes in irrigation in response to drought conditions.

E. lrrigation System Evaluation:

Annually the City will turn off all landscape water accounts November through March (if warmer than expected weather occurs this might be altered.) When accounts are turned back on in March each year the Service Provider shall perform a complete system check of every irrigation system. The Service Provider shall supply the City with a written report of every system as it is completed. Needed repairs shall occur throughout that same time period, and with the approval of the City, to ensure a fully operational system at the beginning of each spring. System evaluations of head, valves, quick couplers, etc. shall also occur monthly, at a minimum, March through November.

For any controller schedule or system check report requested by the City and not supplied by the 10th day of the current month by Service Provider in any month, a $50.00 penalty per controller will be assessed.

City will provide all the water and electricity necessary for the Service Provider to perform the services except instances where excessive costs are incurred by the City due to waste or negligence by the

Service Provider. If the City determines that excessive utility costs due to waste or negligence have occurred and are a result of Service Provider's actions, the City may withhold from payment to Service Provider those funds necessary to reimburse the City for these additional costs. If there is a difference of opinion between the City and the Service Provider as to the whether or not there has been waste due to the negligence of the Service Provider, the opinion of the City will prevail.

Irrigation system repair shall occur and be compensated as stated below.

A. Irrigation system repair will be the responsibility of the Service Provider. All replacement materials are to be with new original types and models, unless a substitute is approved by the City. The Service Provider shall implement repairs in accordance with all effective warranties, and no separate payment shall be made for repairs on equipment covered by warranties.

B. Maintenance, repair, and replacement of malfunctioning sprinkler heads and quick couplers, including risers, swing joints, shall be included in the Service Provider's base bid. The Service Provider shall provide labor for the above items at no extra charge and shall bill the City for the required parts with a maximum markup of 10% over cost.

C. Maintenance and repair of valves, filters, valve boxes, batteries and wiring shall be covered in the Service Provider's base bid. The Service Provider shall provide labor for the above items at no extra charge and shall bill the City for the required parts with a maximum markup of 10% over cost.

D. Replacement of valves, filters, valve boxes, and wiring shall be considered "extra work" in their entirety. Decisions regarding repair verses replacement will be made by the Service Provider and the City jointly. In the event that there is a disagreement with regards to how to proceed, the City's choice will prevail.

E. Repair and replacement of lateral lines, main lines, check valves, and controllers shall be considered "extra work” in their entirety.

F. Repairs and replacements of any irrigation component or property damaged by the Service Provider or as a result of negligence, error, or omission by the Service Provider shall not be submitted to the City for payment and are the responsibility of the Service Provider.

G. Repair and replacement of any irrigation components or property that is a result of vandalism, or unintentional damage, caused by the public shall be considered "extra work" in its entirety. All vandalized components must be presented to the City within one working day of the repair or replacement in order for the Service Provider to be compensated for the repair or replacement. If the vandalized components are not presented within one working day the Service Provider will be paid based on the above stated criteria for repair and replacement.

H. When the Service Provider observes or is notified of water waste due to excessive overspray, overwatering for irrigation system malfunction, he/she shall respond within 24 hours.

Repairs/adjustments shall be completed promptly to prevent damage to the landscape.

2.2-16 PLANT LOSS
It is one of the Service Provider's prime responsibilities to prevent loss of plants caused by pests, diseases, insects, soil conditions, nutrient, micro-climatic conditions, improper planting, or problems in irrigation.

Service Provider agrees to be continuously alert in locating and defining problems and agrees to exercise prompt and proper corrective action. A preliminary written report shall be submitted for major corrective problems not covered in the Agreement along with the costs.

Service Provider agrees to replace, at the Service Provider's cost, any dead, stunted, or damaged items that are the result primarily of the Service Provider's negligence including, but not limited to, irrigation malfunctions that are not addressed within a reasonable amount of time based on environmental conditions. Plants lost from Service Provider's negligence shall be replaced, at the Service Provider's expense, within thirty (30) days of discovery. Replacement plants shall be comparable in size to the lost plant up to a maximum size of a thirty-six (36) inch box, or if smaller, the size shall be approved by the City.

The Service Provider shall not be held responsible for plant losses due to maladies beyond the Service Provider's control; this includes, but is not limited to, disease or insect attack for which there is no legal recommended control, acts of vandalism, earthquakes, fires, storms, freezing/frost, and related events.

Service Provider shall report all such conditions to the City in writing within seventy-two (72) hours of occurrence, and submit a proposal for the work or repairs along with the costs. The Service Provider shall obtain City's written permission/direction or authorization prior to proceeding with the work.

Failure to notify the City within seventy-two (72) hours of occurrence will result in replacement at the Service Provider's cost as if the cause was Service Provider negligence.

The City shall approve all replacement plants that differ in species. However, it is agreed that replacing plants shall not be used by the Service Provider as a substitute for proper care. The City will consider Service Provider negligence a major breach of contract with full responsibility for costs and losses.

Dead plants and those in a state of decline shall be brought to the City's attention immediately and before removal. The City shall pay labor and material for plant replacement not caused by Service Provider negligence, as deemed by the City, on an actual time and material basis.

All new plant material and irrigation installations or repairs shall be guaranteed for a period of ninety (90) days for unhealthy plant installation and/or poor workmanship. Exceptions include damage or death of plant material due to wind or storm, or vandalism, theft, or other willful acts over which the Service Provider has no control. Existing plants shall be replaced by Service Provider if they die due to Service Provider's negligence. All replacement plants and materials shall be inspected and approved by City prior to installation.

At the end or termination of the Agreement, the City reserves the sole right to withhold final payment(s) in the amount necessary to replace any damaged or dying plant material that is a result of Service Provider negligence or to restore any site which is in a condition that is worse than when the Agreement was executed.

2.2-17 TURF AERATION
The Service Provider shall perform core aerations of turf (no mow areas excluded) as part of the base bid. Two (2) aerifications are required in all turf areas each year. Aeration plugs shall be properly destroyed so as to not pose a safety issue or interfere with the use of parks and facilities. The aeration schedule shall be coordinated with the City during the first month of the Agreement period. Additional turf aerations may be proposed, as "extra work" by the Service Provider, in order to meet the

designated standard. All proposals, and costs must be approved by the City prior to additional turf aerations occurring.

2.2-18 FERTILIZATION
The Service Provider will be responsible for performing all fertilizations of turf and landscape and shall be included in the base bid. The fertilization schedule shall be coordinated with the City during the first month of the Agreement period.

All turf areas (excluding no-mow) shall receive fertilizer applications four times per year. Approximate dates of these are April 1, June 1, September 1, and November 1. Turf is to be maintained in good condition with horticultural acceptable growth and color, and additional fertilization may be required as extra work. Variations to these dates may be required under individual circumstances. All fertilizer shall be approved by the City prior to application.

All shrub, groundcover and no-mow turf areas shall receive fertilizer applications two times per year.

Approximate dates of these are March 1 and September 1. Intent is to maintain plants in good condition with horticultural acceptable growth and color. Variations to these dates may be required under individual circumstances. All fertilizer shall be approved by the City prior to application.

2.2-19 BARK AND MULCH
The Service Provider will be responsible for notifying the City when areas need new bark or mulch. The City reserves the right to have the bark installed in any manner that it sees fit and by whomever it sees fit. In the event that the City requests that new bark mulch be added by the Service Provider, it will be considered "extra work” in its entirety.

2.2-20 TREE PRUNING
The Service Provider shall prune trees for clearance as part of the base bid. Pedestrian clearance shall be eight feet (8') and vehicular clearance shall be fifteen feet (15'). Responsibility for structural grid pruning, weight reduction pruning, etc. shall not be contained in the base bid and will be considered "extra work”. The City reserves the right to perform this work in any manner that it deems appropriate.

2.2-21 MOWING AND EDGING
Lawn mowing and edging shall be performed as needed to meet the City landscape standards. When lawns cannot be cut on the scheduled day due to rain, they must be cut as soon as weather and ground conditions permit. This trimming shall include cutting all grass along walls, fences, foundations, curbs, sidewalks, shrubs, tree basins, poles, guy wires, irrigation & utility boxes, and any other object within or immediately adjacent to the lawn areas. Turf and plantings around sprinkler heads shall be trimmed to provide maximum water coverage. Trimming shall be done by power edgers or by hand, but in no case will herbicides be permitted without prior written approval. Clippings shall be removed from all adjacent walkways and other paved surfaces immediately after each mowing/edging.

Seed heads on no-mow turf shall be removed on an annual basis. No-mow turf shall be edged as needed to keep from encroaching on walls, fences, sidewalks, etc.

2.2-22 REFUSE DISPOSAL
All refuse and recycling materials are to be placed in the trash dumpsters and recycling containers located at the Morgan Hill Corporation Yard. Green waste is to be placed in bins provided by the City at the Bus Yard across the street from the Corporation Yard.

2.2-23 TRAFFIC CONTROL
Traffic control shall conform to the latest Caltrans Standards to ensure safe flow of traffic and safety of workers in traffic zones. All traffic control costs shall be included in the prices paid for the various Agreement items of work and no additional compensation will be allowed, therefore.

The Maintenance Manager shall be notified prior to any road closures. No traffic lanes on Dunne Avenue, Cochrane Road, Butterfield Blvd., Watsonville Rd., Hale Ave., Tennant Ave., or Monterey Road may be closed before 9:00 a.m. or after 3:00 p.m. without written permission from the Maintenance Manager. Access to driveways shall be maintained at all times.

When entering or leaving roadways which bear public traffic, the Service Provider's equipment, whether empty or loaded, shall in all cases yield to public traffic.

The provisions in this section may be modified or altered if, in the opinion of the Maintenance Manager, public traffic will be better served, and work expedited. Such modifications or alterations shall not be adopted until approved in writing by the Maintenance Manager.

2.2-24 FINGERPRINTING AND BACKGROUND CHECKS
All Service Provider staff who will be working on City facilities during business hours must pass a background check. Each employee will need to undergo Livescan fingerprinting and will be subject to a background check by the Morgan Hill Police Department in accordance with State of California Department of Justice regulations.

Credentials are issued to each individual employee. The Service Provider is responsible for maintaining and updating their employee roster, including notifying the City of staffing changes. The Service Provider will be responsible for the fingerprinting fees for each employee.

Section 2.3: Locations and Services Required

2.3-1 GROUP 1 – Parks Mowing and Edging:

In Group 1 the Service Provider shall provide complete turf mowing and edging services only at the following locations:

Group 1 Locations Location Year-Round Frequency
Community Park 171 W Edmundson Ave Weekly (March thru Oct.); Bi-Weekly** (Nov. thru Feb.)
Galvan Park 17666 Crest Ave Weekly (March thru Oct.);
Bi-Weekly** (Nov. thru Feb.)
Paradise Park La Crosse Ave & Calle Enrique Weekly (March thru Oct.); Bi-Weekly** (Nov. thru Feb.)
Diana Park 505 Diana Ave Weekly (March thru Oct.);
Bi-Weekly** (Nov. thru Feb.)
Howard Weichert Park 860 Via Del Castille Weekly (March thru Oct.); Bi-Weekly** (Nov. thru Feb.)
Nordstrom Park E Dunne Ave & Murphy Ave Weekly (March thru Oct.); Bi-Weekly** (Nov. thru Feb.)
Jackson Park 16695 Trail Drive Weekly (March thru Oct.); Bi-Weekly** (Nov. thru Feb.)
**Biweekly means every two weeks.

2.3-2 GROUP 3 – Arterial Medians and Miscellaneous Sites In Group 3 the Service Provider shall provide complete landscape maintenance services as described in this document for the locations shown below. Minimum frequencies for trash & recycling material removal, litter removal, pavement and site furnishing cleaning frequencies are shown:

Group 3 Locations Year-Round Frequency
Arterial medians Bi-weekly**
Friendly Inn and Parking Lot Weekly
El Dorado Bi-weekly**
Sunrise Meadows Bi-weekly**
** Biweekly means every two weeks.

2.3-3 GROUP 6 – Downtown
In Group 6 the Service Provider shall provide complete landscape maintenance services as described in this document for the locations below.

Group 6 Locations: Map #1
Downtown Parking Lots, Train Station, Parks,
Year-Round Frequency
Parking Lots (Area 1, 2, 3, 4) Weekly
Train Station West of RR Tracks (Area 5) Weekly
Community Demonstration Garden/County Courthouse (Area 6) Weekly 3rd Street Landscape Areas
(between Monterey Road and Depot Street) (Area 7)
Weekly
4th Street Landscape Areas
(between Monterey Road and Depot Street) (Area 8)
Weekly
Railroad Park (Area 9) Weekly
Third Street Creek Park (Area 10) Biweekly (M/Th)*
Nob Hill Trail Park (Area 11) Biweekly (M/Th)*
Parking Garage Bioswale (Area 12) Weekly
*Bi-weekly means twice a week on Monday and Thursdays
Group 6 Locations: Map #2
Depot Street Landscape Areas
Year-Round Frequency
Parkway Areas Weekly

2.3-4 Extra Work
Extra work pricing will apply to all three groups 1, 3 & 6, and per the Extra Services Hourly Rates in Exhibit B-Schedule of Compensation. Service Providers are responsible for determining which DIR prevailing wage classifications are appropriate for the landscape maintenance scope of work as stated in this agreement.

Section 2.4: ATTACHMENTS
ATTACHMENT 1: City of Morgan Hill Landscape Maintenance Standards All landscaped areas shall be maintained to have a neat and well- tended appearance and to provide a safe environment for the general public at all times.

1. Turf

1.1. General Use Standard

1.1.1. All turf areas will support their designed uses

1.1.2. Turf will be healthy with an even and uniform surface, color, and soil moisture that benefits the plant without disrupting the user’s experience. Turf will not exhibit bare spots. Turf will be pest-free. Shall be maintained in accordance with Turf Maintenance Section, Irrigation and Disease and Pest Control Section standards.

1.2. Turf Maintenance

1.2.1. Mowing

1.2.1.1. Maintained Turf Height 2.5-3 inches

1.2.2. Edging - Complete site edging of trees, curbs, sidewalks, beds, buildings, sprinklers, valve boxes, meter boxes, etc., shall be performed to ensure that the site looks groomed and neat at all times.

1.2.3. Aeration - As needed to maintain standard. Minimum of two times per year.

1.2.4. Weeds - Turf will be weed free. (Excluding Group 2 Park Mowing)

1.2.5. Reseeding or Sod Replacement - Reseeding or sod replacement shall be done on an as needed basis to meet standards.

1.2.6. Fertilizer

1.2.6.1. Fertilizer shall be applied to turf four (4) times per year. Additional applications may be required to maintain standard based on soil conditions.

1.2.6.2. Fertilizer analysis will be determined based on plant needs.

2. Irrigation

2.1. General

2.1.1. Irrigation systems shall be checked as needed at each site to meet standards and conform to the City's conservation efforts and all applicable ordinances, regulations, and laws. All systems will comply with State and local laws regarding prevention and protection of the public water system. All controllers that are on the central system shall be used to their fullest programming capability.

2.1.2. lrrigation preventative maintenance system checks shall be done as needed; all zones will be checked for operation, and repairs will be made immediately. General inspections of turf and plant materials shall be done routinely for sign of stress or damage. Service Providers must provide the City with a monthly irrigation schedule for all controllers including verification that the controllers are on the central irrigation system. Repairs must be initiated within twenty-four (24) hours of discovery.

2.1.3. Water Usage & Scheduling

2.1.3.1. lrrigation systems will deliver optimum water to each plant type at the lowest cost with maximum resource conservation.

2.1.3.2. Water will be delivered primarily during non-use hours and not between 8:00 am and 8:00 pm.

2.1.3.3. Each station shall be adjusted to meet the needs of the specific area unless authorized by the City, as well as adjusted due to weather conditions.

2.1.3.4. Supplemental day-time watering shall be performed as needed to maintain standard

3. Disease and Pest Control

3.1. Turf, trees and landscaping shall be disease and pest free. Any signs of stress or damage to trees, turf or planting materials and/or safety concern shall be addressed using an Integrated Pest Management Approach. Service Provider’s work shall be in compliance with the City’s Integrated Pest Management Program (Attachment 6).

4. Shrubs, Ground Cover Areas

4.1. General Standard

4.1.1. Fertilization, irrigation and cultivation (when applicable) shall be adjusted to serve the requirements of the plant species.

4.1.2. Shall be maintained in healthy, attractive condition that lends variety and interest to the landscape.

4.1.3. Bark mulch shall be placed around and between plants and maintained on an as needed basis.

4.1.4. Removal and Replacement - All failed or damaged plant materials shall be removed and replaced, after City inspection, within thirty (30) days of notice. Replacement plant material shall be the same size and species as the damaged or failed plants, if possible.

The City shall approve replacement of plant materials not meeting these specifications.

4.1.5. Litter and Debris Removal - All areas shall be maintained free of trash and debris.

4.1.6. Weed Control - Plant beds shall be free of weeds. Beds shall be weeded as needed to meet standard.

4.1.7. Trimming All shrubs shall be pruned as needed to meet the intent of the landscape design and have a neat appearance. Ground covers shall be edged as needed to keep plant growth from extending beyond curbs, onto sidewalks, buildings, and turf areas. Ground cover in medians shall not be allowed to extend beyond the curb or sidewalk. Pruning shall occur three (3) times per year or as plant material growth dictates to meet standard.

4.1.8. All hedge and shrub heights along fences and walls will be maintained at the height of the fence line or at an approved height.

5. Rose and Flower Beds

5.1. Shall be maintained in accordance with the standards listed in Shrubs, Ground Cover, and Mulch Areas.

5.2. Flowering plants shall be dead headed and trimmed on an ongoing basis so that wilted blossoms and other defects do not detract from the decorative nature of the plantings

5.3. lrrigation timers shall be coordinated with scheduled use, and maintained in compliance with lrrigation standards.

6. Trees

6.1. General Standards

6.1.1. Shall provide shade, wind breaks, sound attenuation, and otherwise enhance the park or landscape setting. Trees shall conform to the general shape and height of the species:
significantly deformed specimens shall be removed after authorization.

6.1.2. Weed Control - Mechanical grass trimming around trees shall be accomplished in a way that will not scar the trunk in any way.

6.1.3. Trimming - Tree limbs shall be kept at a safe height for the users anticipated in the vicinity: Eight feet (8') for pedestrian clearance (including over turf areas) and fifteen feet (1 5') for vehicular street clearance.

6.1.4. Trees shall not exhibit broken or cracked limbs or other structural damage, and all suckers shall be removed.

6.1.5. Staking - Young trees shall be properly staked to assist in support until roots are firmly established, especially in wind prone areas. Once firmly established, stakes shall be removed with no protrusion above ground. Trees must be straight. Ties on the stakes shall be checked periodically to ensure they are adjusted properly. Tight or damaged ties or stakes shall be replaced or repaired.

6.1.6. Removal and Replacement - All damaged trees shall be removed and replaced, after authorization, and within thirty (30) days of notice. All replacement trees shall be the same size and species of tree as the damaged tree up to 36" box tree. If the tree cannot be matched, the City will determine an appropriate replacement species.

7. Paved Surfaces

7.1. Paved surfaces include areas topped with asphalt, concrete, brick and pavers.

7.2. Pathways, parking lots, tennis courts and other paved areas shall be free of sand, debris, leaves and litter so at no time detracts from the look or safety of the area.

7.3. Sand and decomposed gravel shall be removed from sidewalks.

7.4. All surfaces shall be weed free.

7.5. No standing water from irrigation shall be permitted on pathways.

7.6. Surfaces shall be cleaned of all spills, gum, paint, chalk, dirt & debris.

8. Unpaved Walkways, Other Unplanted Areas

8.1. Unpaved surfaces include designated paths and trails with porous surfacing.

8.1.1. All unpaved surfaces shall be free of leaves, weeds, debris, and litter so at no time it detracts from the look or safety of the area.

8.1.2. No standing water from irrigation shall be permitted on pathways.

8.1.3. Unpaved walkways shall be maintained in a safe, level, and smooth manner

8.2. Fencing, Walls - Notify City of any vandalism, defects, safety items within twenty-four (24) hours of discovery.

9. Medians

9.1. Median landscape will follow the general landscape maintenance standards

9.2. Any signs other than traffic/directional signs are considered to be illegal and should be removed.

If for some reason a sign cannot be removed it must be reported to the Maintenance Coordinator or Maintenance Manager within 24 hours.

9.3. Any debris including weeds, leaf, pine needle, mulch, etc. that is up against the curb of the median, including the turn pocket, should be removed during biweekly service.

10. Playground Maintenance

10.1. Playgrounds shall be maintained weekly to ensure an even distribution of material across the surface.

10.2. Organic and non-organic debris shall be removed from all play areas immediately upon discovery.

10.3. The City shall be notified of any vandalism, defects, safety items as soon as possible and no more than within twenty-four (24) hours of discovery.

11. Litter Removal and Trash & Recycle Container Servicing

11.1. Trash and recycling containers shall be emptied as needed when they are half full or more or have a foul odor at the time of service.

11.2. Site shall be free of all litter after each landscape service.

12. Site Furnishings (Benches, Tables, Trash Containers, Fountains, etc.)

12.1. Site furnishings such as benches, tables, trash containers, drinking fountains, water features, bollards, etc. shall be inspected on a monthly basis for condition and defects.

12.2. Site furnishings shall be cleaned as needed to maintain in clean condition.

12.3. Hazardous debris shall be removed immediately upon discovery.

12.4. The City shall be notified of any vandalism, defects, and/or safety items within twenty-four (24) hours of discovery.

13. Downtown Parks

13.1 Nob Hill Trail Park: The selected Service Provider will be given vehicle access to Nob Hill Trail Park via a Service Provider’s code to the keypad at the gate. The scope of work for Nob Hill Trail Park includes the maintenance of the landscape areas, litter control on the trails throughout the park, site furnishing cleaning, plant maintenance as noted in the planting and irrigation plans and weed abatement in the natural grass area. Weed abatement should be 10 feet on either side of the pathways or to the fence line if the fence line is within 10-15 feet of the path. Weed abatement should occur 1-2 times a year depending on growth. Please note that litter removal along the trail that goes up from Creek Park on the left side of Third Street from the East Third Street Bridge and then down Del Monte Avenue to Nob Hill Terrace will also be part of the scope of work.

13.2 Railroad Park : The scope of work for Railroad Park is landscape maintenance and litter control.

13.3 Third Street Creek Park: The scope of work for Third Street Creek Park is landscape maintenance and litter control.

ATTACHMENT 2: Landscape Inspection Rating Form
SAMPLE
Site: Community Park
Category Meets
Standards Y/N Notes
Turf maintenance
Irrigation maintenance
Shrubs, groundcovers, mulch areas, roses
Tree maintenance
Paved & unpaved surface maintenance
Litter, trash and recycled material
Site furnishing maintenance
NOTE: If any category does not meet City standards, monthly payment for the specific site(s) will be withheld until the site is back in conformance.

14 Updated: August 2024

EXHIBIT B

SCHEDULE OF COMPENSATION RATES
Please see attached Schedule of Compensation

Group 1: Park Mowing
Area Monthly # of months Total Annual Amt
Community Park $ 2,025.00 12 $ 24,300.00
Galvan Park $ 560.00 12 $ 6,720.00
Paradise Park $ 560.00 12 $ 6,720.00
Diana Park $ 225.00 12 $ 2,700.00
Howard Weicert $ 225.00 12 $ 2,700.00
Nordstrom Park $ 450.00 12 $ 5,400.00
Jackson Park $ 115.00 12 $ 1,380.00
GRAND TOTAL -GROUP 1 $ 4,160.00 $ 49,920.00
Group 3: Medians and Misc. Sites
Area
Monthly
Maintenance Monthly Irrigation Total Annual Amt
Arterial Medians $ 3,460.00 $ 450.00 $ 46,920.00
Friendly Inn & Parking Lot $ 340.00 $ 115.00 $ 5,460.00 El Dorado Estates $ 115.00 $ 56.00 $ 2,052.00
Sunrise Meadows $ 340.00 $ 115.00 $ 5,460.00
GRAND TOTAL-GROUP 3 $ 4,255.00 $ 736.00 $ 59,892.00
Group 6: Downtown
Area
Monthly
Maintenance Monthly Irrigation Total Annual Amt
Parking Lots (Areas 1, 2, 3, 4) $ 620.00 $ 56.00 $ 8,112.00 Train Station West of Railroad Tracks
(Area 5) $ 225.00 $ 45.00 $ 3,240.00
Community Demonstration
Garden/County Courthouse (Area 6) $ 340.00 $ 56.00 $ 4,752.00 3rd Street Landscape Areas (Area 7) $ 340.00 $ 56.00 $ 4,752.00 4th Street Landscape Areas (Area 8) $ 225.00 $ 25.00 $ 3,000.00 Railroad Park (Area 9) $ 340.00 $ 56.00 $ 4,752.00
Third Street Creek Park (Area
10) $ 340.00 $ 56.00 $ 4,752.00
Nob Hill Trail Park
(Area 11) $ 450.00 $ 56.00 $ 6,072.00
Parking Garage Bioswale
(Area 12) $ 115.00 $ 25.00 $ 1,680.00
Depot Street Parkway Areas (Map 2) $ 675.00 $ 56.00 $ 8,772.00 GRAND TOTAL-GROUP 6 $ 3,670.00 $ 487.00 $ 49,884.00
Annual Total for Contract Services $ 159,696.00
Two-Year Contract Services Amount $ 319,392.00
Two-Year Allocation for Extra Services @ $30,000 per year $ 60,000.00 Grand Total for Two-Year Contract $ 379,392.00

EXHIBIT B-SCHEDULE OF COMPENSATION
Medallion Landscape Management, Inc.

January 1, 2026 to December 31, 2027

Extra Work Category Hourly Rates
Landscape/Irrigation Laborer/Tender-Landscape/Irrigation Laborer $ 48.00 $ 55.00
$ 65.00
$ 65.00
Included
Landscape/Irrigation Laborer/Tender-Landscape/Irrigation Laborer $ 65.00 $ 70.00
$ 80.00
$ 80.00
Included
Included
$ 80.00
$ 40.00
Included
10%
Spray Equipment
Tractor with implements
Slit seeder
Mower
Supplies
% Mark up over costs
Supervisor/Foreman
Medallion Landscape Management-Groups 1, 3 & 6
Extra Services Rates
January 1, 2026 to December 31, 2027
Equipment
Regular Time Labor Rate including work truck and tools
Emergency/After Hour Response - Labor Rate including work truck and tools
Skilled Technician
Supervisor/Foreman
Landscape/Irrigation Laborer/Tender-Landscape/Irrigation Laborer3 Plumber-Landscape/Irrigation Fitter
Landscape/Irrigation Laborer/Tender-Landscape/Irrigation Laborer3 Plumber-Landscape/Irrigation Fitter
Skilled Technician

15 Updated: August 2024

EXHIBIT C

SCHEDULE OF PERFORMANCE
Maintenance services to be scheduled per Exhibit A-Scope of Services in coordination with the City Maintenance Manager or other designated City staff. Extra services are to be coordinated with the City Maintenance Manager or other designated City staff.

10 CITY COUNCIL STAFF REPORT
MEETING DATE: December 17, 2025
PREPARED BY:

Dat Nguyen, Finance Director
APPROVED BY: City Manager
RECEIVE MONTHLY BUDGET UPDATE AND OCTOBER 2025

FINANCIAL AND INVESTMENT REPORTS

RECOMMENDATION(S)
Receive and file reports.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Preserving and Cultivating Public Trust
2024-2025 Strategic Priorities
Fiscal Sustainability
Community Engagement
REPORT NARRATIVE:

As part of the City Council’s commitment to maintaining a high level of transparency and being responsible stewards of public funds, staff is providing this monthly budget update, along with the October 2025 financial and investment reports.

October 2025 Financial Report
The Revenue and Expense Summary through October 2025 is included on page 4 of the attached monthly financial and investment reports. Overall, General Fund revenues total $9.9 million or about 17% of the budget. Expenditures, including encumbrances, amounted to $21.8 million, of which approximately $2.1 million is attributable to outstanding encumbrances, compared to prior year expenditures, including encumbrances, of $22.3 million. This represents a decrease of $0.5 million, including encumbrances, compared to the prior year. Excluding the encumbrances, expenditures increased by about $1.9 million, primarily due to negotiated salary adjustments, overall cost increases, and timing differences related to an additional payroll period this month.

Budget Update
There has been no material change since the last budget update to the Council on November 19, 2025. Regarding water revenue, Morgan Hill residents consumed approximately 3% more water through October compared to the average for the prior three years. As a result, no revenue stabilization water rate was implemented.

10 COMMUNITY ENGAGEMENT:

Inform.

Finance staff prepares these financial reports to inform City officials, the Council, the community, and various lenders and stakeholders about the financial health of the organization, which assists each one of the interested parties in making sound financial and investment decisions.

ALTERNATIVE ACTIONS:

Not Applicable
PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

The City Council receives and files the financial and investment report for each month.

At the September 16, 2015 meeting, City Council recommended monthly financial and investment reports be agendized under the Consent Agenda, and quarterly financial and investment reports be presented to City Council as an “Other Business” item.

FISCAL AND RESOURCE IMPACT:

The preparation of the report is a part of the Finance workplan.

CEQA (California Environmental Quality Act):

Not a Project
Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.

FINANCE DEPARTMENT

CITY OF MORGAN HILL
October 31, 2025 - 33% of Year Complete
Prepared by:

Monthly Financial and Investment Reports

CITY OF MORGAN HILL, CALIFORNIA
FINANCIAL STATEMENT ANALYSIS - FISCAL YEAR 2025-26
FOR THE MONTH ENDED OCTOBER 2025 – 33% OF YEAR COMPLETE  General Fund – Revenues through October totaled $9.9 million, or about 17% of the budgeted as some of the major revenue categories such as property tax are received later in the fiscal year. Regarding the property tax revenue forecast, the County estimates the City will receive approximately $21.7 million in property tax revenue for the current fiscal year, slightly exceeding the budget of $21.4 million.

However, after adjusting for the excess ERAF set-aside of 20%, or $0.6 million, the property tax revenue shows a slight decrease over the budget. As for sales tax, there’s been no changes to prior forecast. The City's current fiscal year sales tax revenue estimate, before tax rebates, is $12.1 million.

The chart below shows historical General Fund revenues by major revenue category from FY21-22 through FY24-25 Actual, FY25-26 Budget, and YTD as of October 31, 2025.

General Fund expenditures and encumbrances through October totaled $21.8 million, of which approximately $2.1 million is attributable to outstanding encumbrances, compared to prior year expenditures, including encumbrances, of $22.3 million. This represents a decrease of $0.5 million, including encumbrances, compared to the prior year. Excluding the encumbrances, expenditures increased by about $1.9 million, primarily due to negotiated salary adjustments, overall cost increases, and timing differences related to an additional payroll period this month.  Community Services – The Community Services Department’s recreation operations, as reflected in the schedule presented on page 7 of the Monthly Financial and Investments Reports, shows a negative impact to the General Fund of approximately $1.8 million as of October 31, 2025. Recreation operations are expected to be on target with budget.
$16.7 $18.1 $19.1 $19.1 $21.4
$12.9 $12.7 $12.2 $12.1 $12.0
$5.9 $5.7 $6.0 $6.2 $6.0 $6.9 $8.1 $9.2 $9.6 $10.8 $9.7 $7.8 $9.4 $9.5 $7.8 $52.1 $52.4
$56.0 $57.2 $58.0
$9.9
0 10
20 30
40 50
60 70
FY21-22 FY22-23 FY23-24 FY24-25 Budget
FY25-26
YTD
FY25-26
Millions ($)
Historical GF Revenues
Property Tax Sales Tax Franchise and Hotel Taxes Service Charges Other

CITY OF MORGAN HILL, CALIFORNIA
FINANCIAL STATEMENT ANALYSIS - FISCAL YEAR 2025-26
FOR THE MONTH ENDED OCTOBER 2025 – 33% OF YEAR COMPLETE The chart below shows the historical net impact of Recreation Operations to the general fund.

Due to longstanding governmental accounting and budgeting convention, the City’s recreation operations are not charged for indirect costs (known in Morgan Hill as “General Fund Administration”) from the central services departments of City Attorney, City Manager, and Administrative Services.

The City’s other governmental funds, such as Development Services, and the proprietary funds, such as Water and Wastewater, and the Information Services Fund, are assessed such charges through the City’s indirect cost allocation plan, prepared in compliance with the guidelines set forth in the Code of Federal Regulations Title 2, Chapter II, Part 200 (formerly OMB Circular No. A-87), which mandates certain calculation and cost allocation practices that must be followed in order to qualify for Federal grant funding, but which also represents best practice for non-grant funded City operations like utilities and information services.
 Development Services Fund – Revenues through October totaled $2.4 million compared to the prior year to date amount of approximately $2.0 million. Expenditures, including encumbrances, totaled $2.5 million.
 Debt Service Funds – Expenditures through October totaled $2,690. The debt service for the first half of the year includes both interest and principal, while the second half will include interest only. Debt service payments were scheduled when the bonds were issued and are budgeted for the months specified in the underlying bond documents. The General Fund’s portion of the annual debt service payments is approximately $200,000, less than one percent of the General Fund’s budgeted revenues. ($2.0)
($1.5)
($1.0)
($0.5)
$0.0
$0.5
FY16-17 FY17-18 FY18-19 FY19-20 FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 FY25-26 Budget
Millions (S)
Historical Net GF Impact

CITY OF MORGAN HILL, CALIFORNIA
FINANCIAL STATEMENT ANALYSIS - FISCAL YEAR 2025-26
FOR THE MONTH ENDED OCTOBER 2025 – 33% OF YEAR COMPLETE  Wastewater Operations – Revenues through October 31, 2025 totaled $5.5 million. Expenditures and outstanding encumbrances totaled $6.0 million or 32% of the budget. The table below shows historical Wastewater Operations revenues and expenditures from FY21-22 through FY24-25 Actual, FY25-26 Budget, and YTD as of October 31, 2025.
(amount in millions) FY21-22 FY22-23 FY23-24 FY24-25
Budget
FY25-26
YTD
FY25-26
Revenues 14.9 15.3 15.2 18.2 18.4 5.5
Expenditures 16.0 14.9 14.8 18.5 18.1 6.0
Operating Margin (0.7) 0.1 0.3 0.1 (0.1) (0.5)
Operating Margin
without Encumbrances (0.7) 0.1 0.3 0.1 (0.1) (0.2)
 Water Operations – Water Operations includes Utility Billing, Water Conservation, and Water Operations. Revenues through October 31, 2025 totaled $6.9 million. Water Operations expenditures, including outstanding encumbrances, totaled $7.3 million. Morgan Hill residents consumed about 3% more water through October compared to the prior three-year average. As such, no revenue stabilization water rate was implemented. The table below shows Water Operations revenues and expenditures from FY21-22 through FY24-25 Actual, FY25-26 Budget, and YTD as of October 31, 2025. (amount in millions) FY21-22 FY22-23 FY23-24 FY24-25
Budget
FY25-26
YTD
FY25-26
Revenues 18.1 18.7 16.0 21.5 23.5 6.9
Expenditures 18.0 19.1 15.2 21.5 23.8 7.3
Operating Margin 0.1 0.8 (0.4) (0.3) - (0.4)
Operating Margin
without Encumbrances 0.1 0.8 (0.4) (0.3) - 0.1
 Investments – Eight securities were called, and five new securities were purchased. Total interest earnings received on investments were $370,000 during the month.

% OF ACTUAL PLUS % OF

FUND NAME ACTUAL BUDGET ENCUMBRANCES BUDGET
General 9,886,513 $ 17% $ 21,827,033 33%
Development Services 2,373,048 40% 2,458,178 36%
Wastewater Operations 5,454,843 30% 5,985,305 32%
Wastewater Other 3,532,532 8% 7,113,571 9%
Water Operations 6,859,435 29% 7,326,501 31%
Water Other 3,996,170 31% 10,536,292 27%
Other Special Revenues * 2,033,316 29% 3,692,271 35%
Capital Projects & Streets 3,501,331 11% 13,111,960 29% Debt Service 231,066 33% 2,690 0%
Internal Service 3,814,761 23% 7,132,444 44%
TOTAL FOR ALL FUNDS 41,683,015 $ 19% $ 79,186,247 26%
* Includes all Special Revenue Funds except Development Services Fund and Street Funds.

REVENUES EXPENSES
0% 10% 20% 30% 40% 50%
General
Development
Services
Wastewater
Operations
Wastewater Other
Water Operations
Water Other
Other Special
Revenues *
Capital Projects
& Streets
Debt Service
Internal Service
Morgan Hill YTD Revenue & Expense Summary
October 31, 2025 - 33% of Year Complete
Revenues to Budget Expenses to Budget
Percentage of Actual to Budget
33%

% OF PRIOR YEAR % CHANGE FROM

REVENUE CATEGORY BUDGET ACTUAL BUDGET TO DATE PRIOR YEAR Property Tax 21,369,792 $ 627,115 $ 3% 702,530 $ -11%
Sales Tax 11,989,269 2,025,889 17% 1,922,722 5%
Franchise Tax 3,354,166 615,898 18% 568,887 8%
Hotel Tax 2,658,340 736,210 28% 708,553 4%
Other Agencies 940,183 93,809 10% 352,612 -73%
Service Charges 10,794,856 3,614,510 34% 3,619,842 0%
Interest/Other 3,468,411 1,121,627 32% 1,291,399 -13%
Transfers In 3,411,140 1,051,455 31% 1,067,826 -2%
TOTAL REVENUES 57,986,156 $ 9,886,513 $ 17% 10,234,371 $ -3% 0% 5% 10% 15% 20% 25% 30% 35% 40%
Property Tax
Sales Tax
Franchise Tax
Hotel Tax
Other Agencies
Service Charges
Interest/Other
Transfers In
Total Revenues
Percent of Actual to Budget
Morgan Hill YTD General Fund Revenues
October 31, 2025 - 33% of Year Complete
33%

ACTUAL PLUS PRIOR YTD PLUS % CHANGE FROM
EXPENDITURE CATEGORY BUDGET ENCUMBRANCES % OF BUDGET ENCUMBRANCES PRIOR YEAR Administration $ 7,097,361 $ 2,106,450 30% 2,797,850 $ -25% Community Services 20,176,055 7,483,150 37% 7,088,644 6% Police 26,079,133 8,155,018 31% 8,366,195 -3%
Fire 11,212,073 3,662,722 33% 3,594,839 2%
Transfers Out 1,418,558 419,692 30% 486,077 -14%
TOTAL EXPENDITURES $ 65,983,180 $ 21,827,033 33% 22,333,605 $ -2% 0% 10% 20% 30% 40%
Administration
Community
Services
Police
Fire
Transfers Out
Total Expenditures
Percent of Actual to Budget
Morgan Hill YTD General Fund Expenditures
October 31, 2025 - 33% of Year Complete
33%

City of Morgan Hill
Recreation Report - Fiscal Year 2025-26
For the Month Ended October 31, 2025
33% of Year Complete
% of
Budget October 2025 YTD Budget
Revenues
Membership Services & Rec Programs 6,830,960 $ 456,911 $ 2,293,886 $ Facility Rentals 1,245,612 140,174 564,933
Community Services 138,498 4,206 18,003
Transfers in 100,000 6,250 33,333
Total Revenues 8,315,070 $ 607,541 $ 2,910,155 $ 35%
Less: Expenditures
Membership & Program Services 7,541,945 $ 481,600 $ 2,292,531 $ Facility Rentals 1,451,514 131,070 413,200
Community Services 883,254 85,090 277,920
Total Expenditures 9,876,714 $ 697,759 $ 2,983,651 $ 30% Net Impact without encumbrances (1,561,644) $ (90,218) $ (73,496) $ Encumbrances - - 1,677,296
Net Impact with encumbrances (1,561,644) $ (90,218) $ (1,750,793) $

The chart below shows cash balances by fund type reconciled to City's financial system:

City of Morgan Hill
Monthly Investment Report - October 31, 2025
The following are the snapshots of City's investment portfolio as of October 31, 2025. The first chart shows the portfolio composition by investment type:

LAIF - $0.1M
< 1%
CA Class - $19.6M
10%
Treasury - $13.8M
7%
Money Market -
$5.6M
3%
Federal Agency Issues-
$148.2M
75%
Certificate of Deposits -
$1.2M
< 1%
Bond Reserves/Trust -
$8.9M
4%
Cash & Other Deposits - $-0.5M
< 1%
Investment Portfolio Composition - $196.9 Million
LAIF - $0.1M
CA Class - $19.6M
Treasury - $13.8M
Money Market - $5.6M
Federal Agency Issues-
$148.2M
Certificate of Deposits -
$1.2M
Bond Reserves/Trust -
$8.9M
Cash & Other Deposits -
$-0.5M
General Fund, $22.0M
Development Services,
$1.8M
Water - Operations,
$2.2M
Water Other, $35.0M
Sewer - Operations,
$1.8M
Sewer Other, $52.3M
Other Special Revenue,
$18.3M
Streets and Capital
Projects, $38.3M
Debt Service , $0.6M
Internal Service,
$24.0M
Agency Funds (assessment
dists./refundable deposits),
$0.6M
Cash Balances by Fund Type - $196.9 Million

The following chart illustrates a yield comparison by month among the City's portfolio, LAIF and 2-Year US Treasury:

The chart below illustrates monthly average days to maturity of the City's portfolio along with the weighted average yield for the past two years:

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%
Oct-23
Nov-23
Dec-23
Jan-24
Feb-24
Mar-24
Apr-24
May-24
Jun-24
Jul-24
Aug-24
Sep-24
Oct-24
Nov-24
Dec-24
Jan-25
Feb-25
Mar-25
Apr-25
May-25
Jun-25
Jul-25
Aug-25
Sep-25
Oct-25
Yield Portfolio vs. Benchmarks
LAIF Yield 2 Yr US-Treasury

2.70%

2.80%

2.90%

3.00%

3.10%

3.20%

3.30%

3.40%

3.50%
0 100
200
300
400
500
600
700
800
900
1000
Oct-23
Nov-23
Dec-23
Jan-24
Feb-24
Mar-24
Apr-24
May-24
Jun-24
Jul-24
Aug-24
Sep-24
Oct-24
Nov-24
Dec-24
Jan-25
Feb-25
Mar-25
Apr-25
May-25
Jun-25
Jul-25
Aug-25
Sep-25
Oct-25
Days Yield
Portfolio Yield and Maturity Trends
Avg Days to Maturity Yield
CITY

City of Morgan Hill
Investment Portfolio Detail
As of October 31, 2025
Investment Settlement Cost Book % of Market YTM Next Call Date of Type CUSIP Date Value Value Portfolio Value at Cost Date Maturity L A I F $ 64,616 $ 0.0% 64,616 $ 4.15% 64,741
California C L A S S 19,555,938 19,555,938 9.9% 19,555,938 4.19% WFB Money Market 3,121,965 3,121,965 1.6% 3,121,965 4.05% US Bank - Portfolio of Securities
Dreyfus Treasury Agency MM 261908107 2,482,802 2,482,802 1.3% 2,482,802 3.88% Treasury Note 91282CCZ2 10/8/2021 1,987,656 1,997,732 1.0% 1,949,100 1.00% 9/30/2026 9/30/2026 Treasury Note 912828U24 6/13/2022 1,904,688 1,977,587 1.0% 1,965,020 3.16% 11/15/2026 11/15/2026 Treasury Note 91282CFL0 9/30/2024 2,031,719 2,024,840 1.0% 2,015,620 3.53% 9/30/2029 9/30/2029 Treasury Note 91282CLL3 10/1/2024 1,994,323 1,994,510 1.0% 1,991,560 3.53% 9/15/2027 9/15/2027 Treasury Note 91282CCV1 10/4/2024 1,822,536 1,869,753 0.9% 1,868,120 3.61% 8/31/2028 8/31/2028 Treasury Note 31282CFJ5 10/7/2024 1,949,794 1,955,712 1.0% 1,962,180 3.76% 8/31/2029 8/31/2029 Treasury Note 91282CFY2 12/19/2024 1,959,077 1,962,896 1.0% 2,015,620 4.39% 11/30/2029 11/30/2029 FFCB Bond 3133EMFR8 11/3/2020 2,000,000 2,000,000 1.0% 2,000,000 0.54% 11/5/2025 11/3/2025 FNMA Bond 3135GA4P3 11/18/2020 2,000,000 2,000,000 1.0% 1,997,160 0.65% 11/18/2025 11/18/2025 FHLMC Bond 3134GXEJ9 11/24/2020 2,000,000 2,000,000 1.0% 1,996,120 0.64% 11/24/2025 11/24/2025 FFCB Bond 3133EMHF2 11/24/2020 1,000,000 1,000,000 0.5% 0.60% 11/5/2025 11/24/2025 997,840 FHLMC Bond 3134GXCS1 11/25/2020 3,000,000 3,000,000 1.5% 2,994,090 0.63% 11/25/2025 11/25/2025 FHLMC Bond 3134GXFA7 11/30/2020 2,000,000 2,000,000 1.0% 1,995,740 0.65% 11/26/2025 11/26/2025 FFCB Bond 3133EMLC4 12/22/2020 2,000,000 2,000,000 1.0% 1,990,080 0.47% 11/5/2025 12/22/2025 FHLB Bond 3130AKQ74 1/22/2021 2,000,000 2,000,000 1.0% 1,985,620 0.63% 11/22/2025 1/22/2026 FNMA Bond 3135G06R9 1/28/2021 2,000,000 2,000,000 1.0% 1,984,320 0.55% 11/28/2025 1/28/2026 FHLB Bond 3130AKRN8 1/28/2021 2,000,000 2,000,000 1.0% 1,984,780 0.65% 11/28/2025 1/28/2026 FHLB Bond 3130ALCV4 2/24/2021 2,000,000 2,000,000 1.0% 1,980,820 0.75% 11/24/2025 2/24/2026 FHLB Bond 3130ALDB7 2/25/2021 2,000,000 2,000,000 1.0% 1,980,000 0.66% 11/25/2025 2/25/2026 FHLB Bond 3130AKZ25 2/26/2021 2,000,000 2,000,000 1.0% 1,979,120 0.65% 11/26/2025 2/26/2026 FHLB Bond 3130ALGS7 3/10/2021 2,000,000 2,000,000 1.0% 1,978,420 0.85% 12/10/2025 3/10/2026 FHLB Bond 3130ALEP5 3/16/2021 2,000,000 2,000,000 1.0% 1,976,300 0.70% 12/16/2025 3/16/2026 FHLB Bond 3130ALDN1 3/16/2021 2,000,000 2,000,000 1.0% 1,977,020 0.80% 12/16/2025 3/16/2026 FHLB Bond 3130AMNH1 6/9/2021 2,000,000 2,000,000 1.0% 1,967,920 1.08% 11/5/2025 6/9/2026 FHLB Bond 3130AMYJ5 6/30/2021 2,000,000 2,000,000 1.0% 1,962,600 1.00% 12/30/2025 6/30/2026 FHLB Bond 3130AMYP1 7/15/2021 3,000,000 3,000,000 1.5% 2,944,110 1.13% 1/15/2026 7/15/2026 FHLB Bond 3130ANJC5 8/26/2021 2,000,000 2,000,000 1.0% 1,952,240 0.80% 8/26/2026 8/26/2026 FHLB Bond 3130ANLW8 8/26/2021 3,000,000 3,000,000 1.5% 2,932,680 1.00% 11/26/2025 8/26/2026 FHLB Bond 3130ANLZ1 8/26/2021 2,000,000 2,000,000 1.0% 1,952,720 0.90% 8/26/2026 8/26/2026 FHLB Bond 3130A8XY4 9/13/2021 2,103,340 2,017,817 1.0% 1,968,300 0.82% 9/11/2026 9/11/2026 FFCB Bond 3133EM4X7 9/28/2021 1,982,960 1,997,045 1.0% 1,950,020 0.98% 9/10/2026 9/10/2026 FHLB Bond 3130APCH6 9/29/2021 3,000,000 3,000,000 1.5% 2,928,000 1.13% 11/5/2025 9/29/2026 FHLB Bond 3130ANZE3 9/30/2021 2,000,000 2,000,000 1.0% 1,948,420 0.88% 9/30/2026 9/30/2026 FHLB Bond 3130AP6N0 9/30/2021 3,000,000 3,000,000 1.5% 2,927,610 1.05% 12/30/2025 9/30/2026 FHLB Bond 3130AP6M2 9/30/2021 3,000,000 3,000,000 1.5% 2,926,170 1.02% 12/30/2025 9/30/2026 FHLB Bond 3130APCG8 10/19/2021 2,000,000 2,000,000 1.0% 1,947,380 1.00% 1/19/2026 10/19/2026 FHLB Bond 3130APNX9 11/18/2021 2,000,000 2,000,000 1.0% 1,949,380 1.30% 11/18/2025 11/18/2026 FHLB Bond 3130AQHU0 1/19/2022 2,000,000 2,000,000 1.0% 1,964,360 1.74% 1/19/2027 1/19/2027 FHLMC Bond 3134GXUZ5 6/15/2022 2,000,000 2,000,000 1.0% 1,998,820 3.28% 12/15/2025 12/15/2025 FHLMCMTN Bond 3134HAKY8 9/13/2024 2,985,210 2,988,562 1.5% 2,995,380 4.11% 12/13/2025 9/13/2029 FHLB Bond 3130B2P58 9/26/2024 2,003,014 2,000,000 1.0% 1,996,040 3.87% 9/10/2026 9/10/2029 FHLB Bond 3130B36N8 10/15/2024 1,944,000 1,995,253 1.0% 1,993,080 4.32% 4/15/2026 10/15/2029 FHLMCMTN Bond 3134HAC92 11/19/2024 3,000,000 3,000,000 1.5% 3,000,330 5.00% 11/19/2025 11/19/2029 FFCB Bond 3133ERF48 12/4/2024 2,000,000 2,000,000 1.0% 2,000,720 4.77% 12/4/2025 12/4/2028 FHLB Bond 3130B5A73 2/26/2025 2,000,000 2,000,000 1.0% 2,010,200 4.75% 8/26/2026 2/26/2030 FHLMCMTN Bond 3134HBBE0 3/11/2025 2,000,000 2,000,000 1.0% 1,995,220 4.88% 12/11/2025 3/11/2030 FNMA Bond 3136GABW8 3/12/2025 2,000,000 2,000,000 1.0% 1,998,220 5.00% 12/12/2025 3/12/2030 FAMCMTN Bond 31424WZC9 5/7/2025 3,000,000 3,000,000 1.5% 2,990,790 4.55% 5/7/2026 5/7/2030 FHLMCMTN Bond 3134HBQZ7 5/19/2025 2,000,000 2,000,000 1.0% 2,000,480 4.50% 11/19/2025 5/19/2027 FHLB Bond 3130B6FS0 5/28/2025 2,000,000 2,000,000 1.0% 2,004,820 4.75% 5/14/2026 5/14/2030 FAMCMTN Bond 31424WB50 5/28/2025 2,000,000 2,000,000 1.0% 1,997,760 4.74% 5/28/2026 5/28/2030 FFCB Bond 3133ER3L3 6/6/2025 2,029,443 2,000,000 1.0% 2,001,780 4.69% 2/13/2026 2/13/2029

Investment Settlement Cost Book % of Market YTM Next Call Date of Type CUSIP Date Value Value Portfolio Value at Cost Date Maturity FAMCMTN Bond 31424WG30 6/26/2025 1,200,000 1,200,000 0.6% 1,205,856 4.33% 6/26/2026 6/26/2028 FFCB Bond 3133ETMB0 6/27/2025 2,000,775 2,000,000 1.0% 2,003,760 4.65% 6/24/2026 6/24/2030 FAMCMTN Bond 31424WG55 7/1/2025 2,000,000 2,000,000 1.0% 2,005,880 4.60% 7/1/2026 7/1/2030 FFCB Bond 3133ETNA1 7/2/2025 2,000,000 2,000,000 1.0% 2,003,680 4.50% 7/2/2026 1/2/2030 FHLMCMTN Bond 3134HBYC9 7/15/2025 2,000,000 2,000,000 1.0% 2,000,860 4.75% 1/15/2026 7/15/2030 FHLMCMTN Bond 3134HBZA2 7/15/2025 2,000,000 2,000,000 1.0% 2,001,580 4.50% 1/15/2026 7/14/2028 FHLMCMTN Bond 3134HBB59 7/30/2025 2,000,000 2,000,000 1.0% 2,004,620 4.64% 4/30/2026 7/30/2030 FNMA Bond 3136GAM22 8/12/2025 2,988,270 2,998,346 1.5% 2,994,270 4.14% 2/12/2026 8/12/2030 FAMCMTN Bond 31424WN81 8/12/2025 2,000,000 2,000,000 1.0% 2,000,480 4.39% 8/12/2026 8/12/2030 FFCB Bond 3133ETUP0 8/20/2025 2,000,000 2,000,000 1.0% 1,997,800 4.49% 2/20/2026 5/20/2030 FFCB Bond 3133ETUN5 8/25/2025 2,000,000 2,000,000 1.0% 1,999,000 4.45% 2/25/2026 2/25/2030 FHLB Bond 3130B7KG8 8/25/2025 2,000,000 2,000,000 1.0% 1,996,420 4.38% 11/25/2025 8/25/2028 FFCB Bond 3133ETWC7 9/2/2025 2,000,000 2,000,000 1.0% 2,000,020 4.35% 12/2/2025 3/2/2029 FNMA Bond 3136GAQF9 9/3/2025 2,000,000 2,000,000 1.0% 1,993,500 4.25% 6/3/2026 6/3/2030 FFCB Bond 3133ETWB9 9/5/2025 2,000,000 2,000,000 1.0% 1,999,060 4.31% 12/5/2025 9/5/2028 FFCB Bond 3133ETXY8 9/16/2025 2,000,000 2,000,000 1.0% 1,994,680 4.00% 9/16/2026 9/16/2030 FHLB Bond 3130B7SF2 9/18/2025 2,000,222 2,000,000 1.0% 1,998,400 4.00% 9/17/2026 9/17/2030 FNMA Bond 3136GAUR8 9/25/2025 2,000,000 2,000,000 1.0% 2,000,260 4.20% 3/18/2026 9/18/2030 FNMA Bond 3136GAVD8 9/26/2025 2,000,000 2,000,000 1.0% 1,997,440 4.13% 6/26/2026 9/26/2030 FNMA Bond 3136GAVW6 9/30/2025 2,000,000 2,000,000 1.0% 2,001,840 4.45% 12/30/2025 9/30/2030 FHLB Bond 3130B7YU2 10/15/2025 2,000,000 2,000,000 1.0% 1,992,220 4.33% 4/15/2026 10/15/2030 FFCB Bond 3133ETJ73 10/21/2025 2,000,000 2,000,000 1.0% 1,995,020 4.12% 4/21/2026 10/21/2030 FFCB Bond 3133ETJ73 10/21/2025 2,000,000 2,000,000 1.0% 1,995,020 4.12% 4/21/2026 10/21/2030 FNMA Bond 3136GAYT0 10/22/2025 2,000,000 2,000,000 1.0% 1,998,960 4.00% 1/23/2026 10/23/2028 FNMA Bond 3136GAZ44 10/24/2025 2,000,000 2,000,000 1.0% 1,994,720 4.00% 10/15/2026 10/15/2030 CD - Morgan Stanley Bank 61690DGT9 11/8/2023 250,000 250,000 0.1% 5.05% 11/8/2028 11/8/2028 259,415 CD - Morgan Stanley Private Bank 61768EE82 11/8/2023 250,000 0.1% 250,000 5.05% 11/8/2028 11/8/2028 259,415 CD - American Express 02589AF98 11/8/2023 250,000 0.1% 250,000 5.00% 11/8/2028 11/8/2028 259,063 CD - State Bank India 8562834U7 11/24/2023 250,000 0.1% 250,000 5.00% 11/24/2028 11/24/2028 261,408 CK - JPMorgan Chase 46659CLN8 9/30/2025 250,000 0.1% 250,000 4.13% 9/30/2030 9/30/2030 250,198 Sub Total/Average $ 165,619,830 $ 165,712,857 84.2% 164,717,846 $ 2.87% Total City Managed/Average $ 188,362,349 $ 188,455,376 95.7% 187,460,489 $ 3.02% Bond Reserve Accounts - Held By Trustees $ 1,047,840 $ 1,047,840 0.5% $ 1,047,840 Cash/Deposits $ (532,869) $ (532,869) -0.3% $ (532,869) PARS and CALPERS CERBT Trust $ 7,887,404 $ 7,887,404 4.0% $ 10,789,254 GRAND TOTAL/AVERAGE $ 196,764,724 $ 196,857,751 100.0% 198,764,714 $

Invested Book Value % of Market
in Fund Yield End of Month Total Value
Investments
State Treasurer LAIF - City All Funds Pooled 4.15% $ 64,616 0.0% $ 64,741 California CLASS All Funds Pooled 4.19% 19,555,938 9.9% 19,555,938 US Bank - Portfolio of Securities All Funds Pooled 2.87% 165,712,857 84.2% 164,717,846 WFB MMA All Funds Pooled 4.05% 3,121,965 1.6% 3,121,965 SUBTOTAL $ 188,455,376 95.7% 187,460,489 $
Bond Reserve Accounts - held by trustees
Zions Bank - Civic Center/Library Facility
Blackrock Liq Fund Debt Service 4.21% 257,563 0.1% 257,563 Zions Bank - MH Police Facility Lease Revenue Bonds
Blackrock Liq Fund Debt Service 4.21% 327,807 0.2% 327,807 BNY - RDA Bonds
Dreyfus Cash Mgmt 521 Agency Fund 3.58% 462,471 0.2% 462,471 SUBTOTAL 1,047,840 0.5% 1,047,840
Other Cash/Deposits
General Checking All Funds (578,719) -0.3% (578,719)
Workers' Comp Administrators Workers' Comp 30,000 0.0% 30,000 Petty Cash & Emergency Cash General Fund 15,850 0.0% 15,850 CALPERS CERBT - OPEB Trust 5,237,404 2.7% 7,139,969
PARS - PENSION Trust 2,650,000 1.3% 3,649,285
SUBTOTAL 7,354,535 3.7% 10,256,385
Total Cash and Investments $ 196,857,751 100.0% $ 198,764,714

CASH ACTIVITY SUMMARY
FY 2025-26
07/01/2025 Change in 10/31/2025
Fund Type Balance Cash Balance Balance
General Fund 27,754,684 $ (5,712,775) $ 22,041,909 $
Development Services 1,256,663 543,227 1,799,890
Water - Operations 1,682,675 484,891 2,167,566
Water Other 33,378,396 1,666,457 35,044,853
Sewer - Operations 581,685 1,202,771 1,784,456
Sewer Other 51,823,477 427,997 52,251,474
Other Special Revenue 18,941,285 (685,053) 18,256,232
Streets and Capital Projects 40,813,196 (2,551,401) 38,261,795 Debt Service 354,990 228,376 583,367
Internal Service 29,447,571 (5,406,921) 24,040,650
Agency Funds (assessment dists./refundable deposits) 6,701,471 (6,075,911) 625,560 Total $ 212,736,093 $ (15,878,342) $ 196,857,751
Note: See Investment Porfolio Detail for maturities of "Investments." Market values are obtained from the City's investment brokers' monthly reports.

I certify that information on the investment report has been reconciled to the general ledger and bank statements and that there are sufficient funds to meet the expenditure requirements of the City for the next six months. The portfolio is in compliance with the City of Morgan Hill Investment Policy and all State laws and regulations.

Prepared by: ____________________________________ Approved by:

Gina Nazareno, Senior Accountant
Reviewed by: ____________________________________
Dat Nguyen, Finance Director Cindy Murphy, Treasurer

CITY OF MORGAN HILL CASH AND INVESTMENT REPORT
FOR THE MONTH OF OCTOBER 31, 2025
FOR THE FISCAL YEAR OF 2025-26

City of Morgan Hill
Year to Date Revenues - Fiscal Year 2025-26
For the Month Ended October 31, 2025
33% of Year Complete

CURRENT INCR (DECR)
ADOPTED AMENDED YTD % PRIOR FROM PRIOR %

BUDGET BUDGET ACTUAL OF BUDGET YTD YTD CHANGE
010 GENERAL FUND
TAXES
Property Tax - Secured/Unsecured $ 17,345,642 17,945,642 $ 591,848 3% $ 667,779 $ (75,931) -11% Property Tax - RPTTF Residual Distribution 3,098,634 3,098,634 n/a - - n/a - Property Tax - Supplemental Roll 325,515 325,515 35,267 11% 34,751 516 1% Sales Tax 12,711,087 11,511,087 1,953,784 17% 1,888,580 65,204 3% Public Safety Sales Tax 478,182 478,182 72,105 15% 34,141 37,963 111% Transient Occupancy Taxes 2,958,340 2,658,340 736,210 28% 708,553 27,657 4% Franchise (Refuse ,Cable ,PG&E) 3,354,166 3,354,166 615,898 18% 568,887 47,011 8% Property Transfer Tax 642,000 642,000 162,363 25% 162,431 (68) 0% TOTAL TAXES 40,913,566 40,013,566 4,167,475 10% 4,065,123 102,352 3%

LICENSES/PERMITS
Business License 200,000 200,000 66,320 33% 66,741 (422) -1% Other Permits 82,750 82,750 111,055 134% 147,157 (36,102) -25% TOTAL LICENSES/PERMITS 282,750 282,750 177,375 63% 213,898 (36,523) -17%

FINES AND PENALTIES
Parking Enforcement 9,800 9,800 1,369 14% 3,166 (1,797) -57% Bails & Fines 55,000 55,000 12,038 22% 7,757 4,281 55%
Administrative Citations 20,000 20,000 7,600 38% 11,675 (4,075) -35% TOTAL FINES AND PENALTIES 84,800 84,800 21,007 25% 22,597 (1,591) -7%

OTHER AGENCIES
Motor Vehicle in-Lieu 63,654 63,654 70,915 111% - 70,915 n/a Other Revenue - Other Agencies 940,183 434,545 93,809 10% 352,612 (258,804) -73% TOTAL OTHER AGENCIES 498,199 1,003,837 164,724 16% 352,612 (187,889) -53%

CHARGES CURRENT SERVICES
Police False Alarm Charge 33,500 33,500 5,513 16% 9,394 (3,881) -41% Business License Application Review 84,872 84,872 17,174 20% 18,470 (1,296) -7% Membership Services & Rec Programs 6,830,960 6,830,960 2,293,886 34% 2,217,915 75,970 3% Facility Rentals 1,245,612 1,245,612 564,933 45% 518,592 46,341 9% Community Services 138,498 138,498 18,003 13% 27,828 (9,826) -35% General Administration Overhead 1,727,037 1,727,037 594,399 34% 560,970 33,429 6% Other Charges Current Services 734,377 734,377 120,603 16% 266,673 (146,070) -55% TOTAL CURRENT SERVICES 10,794,856 10,794,856 3,614,510 33% 3,619,842 (5,331) 0%

OTHER REVENUE
Use of money/property 1,283,417 1,583,417 416,429 26% 638,681 (222,253) -35% Other Revenues 811,790 548,648 273,538 34% 253,791 19,747 8% TOTAL OTHER REVENUE 1,832,065 2,395,207 689,967 29% 892,472 (202,505) -23%

TRANSFERS IN
One Time Transfer 165,000 165,000 55,000 33% 55,000 0% - Public Safety Facilities Fund 50,000 50,000 16,667 33% 16,667 0% - Supplemental Law Enforcement Fund 100,000 100,000 n/a - 33,333 (33,333) -100% Countywide Solid Waste 563,961 544,328 187,987 35% 180,109 7,878 4% Streets 851,932 851,932 225,175 26% 229,884 (4,709) -2% Park Maintenance 650,000 650,000 216,667 33% 216,667 n/a - Sewer Operations 434,390 434,390 144,797 33% 137,900 6,897 5% Water Operations 434,390 434,390 144,797 33% 137,900 6,897 5% Open Space 81,100 81,100 27,033 33% 27,033 n/a -
Park Development 100,000 100,000 33,333 33% 33,333 n/a - TOTAL TRANSFERS IN 3,430,773 3,411,140 1,051,455 31% 1,067,826 (16,371) -2% TOTAL GENERAL FUND 57,837,009 57,986,156 9,886,513 17% 10,234,371 (347,858) -3%

SPECIAL REVENUE FUNDS
202 STREET MAINTENANCE
Gas Tax 2105 - 2107.5 851,932 851,932 222,630 26% 227,612 (4,982) -2% Interest / Other Revenue/Other Charges 1,665 1,665 2,544 153% 2,272 272 12% 202 STREET MAINTENANCE 853,597 853,597 225,175 26% 229,884 (4,710) -2%

City of Morgan Hill
Year to Date Revenues - Fiscal Year 2025-26
For the Month Ended October 31, 2025
33% of Year Complete

CURRENT INCR (DECR)
ADOPTED AMENDED YTD % PRIOR FROM PRIOR %

BUDGET BUDGET ACTUAL OF BUDGET YTD YTD CHANGE

SPECIAL REVENUE FUNDS
205 SUPPLEMENTAL LAW ENFORCEMENT FUND
Interest Income 11,065 11,065 5,582 50% 5,940 (358) -6% Police Grant/SLEF/JAG 100,000 100,000 12,500 13% 102,997 (90,497) -88% 205 SUPPLEMENTAL LAW ENFORCEMENT FUND 111,065 111,065 18,082 16% 108,936 (90,855) -83% 206 DEVELOPMENT SERVICES
Building Fees 3,655,850 3,578,850 1,437,404 40% 1,268,826 168,579 13% Planning Fees 954,276 1,059,276 338,705 32% 353,652 (14,947) -4% Engineering Fees 723,341 723,341 477,011 66% 296,858 180,152 61% Other Revenue/Current Charges 544,851 516,851 119,927 23% 73,854 46,073 62% 206 DEVELOPMENT SERVICES 5,878,318 5,878,318 2,373,048 40% 1,993,190 379,858 19% 207 LONG RANGE PLANNING 827,760 827,760 473,720 57% 281,241 192,479 68% 215 and 216 HCD BLOCK GRANT
Interest Income/Other Revenue 994 994 755 76% 1,018 (263) -26% 215 and 216 HCD BLOCK GRANT 994 994 755 76% 1,018 (263) -26% 225 ASSET SEIZURE 1,631 1,631 1,140 70% 1,553 (413) -27% 229 LIGHTING AND LANDSCAPE 207,135 207,135 1,987 1% 3,485 (1,498) -43% 230 COMMUNITY FACILITIES DISTRICT 28,314 28,314 1,751 6% 2,465 (715) -29% 232 ENVIRONMENTAL PROGRAMS 525,286 525,286 164,330 31% 158,300 6,031 4% 234 MOBILE HOME PARK RENT STAB. 2,447 2,447 4,458 182% 1,196 3,262 273% 236 HOUSING MITIGATION 3,061,720 3,478,220 761,621 22% 668,438 93,184 14% 240 EMPLOYEE ASSISTANCE 481 481 3,048 634% 2,413 26% 635 246 COUNTYWIDE SOLID WASTE 2,393,478 1,716,866 556,164 32% 432,896 123,268 28% 255 HOUSING SUCCESSOR AGENCY 418,260 418,260 45,865 11% 234,870 (189,005) -80% 260 PUBLIC ART 869 869 395 45% - 395 n/a
TOTAL SPECIAL REVENUE FUNDS 14,311,356 14,051,244 4,631,539 33% 4,119,886 511,653 12%

CAPITAL PROJECTS FUNDS
301 PARK DEVELOPMENT 2,324,852 2,324,852 300,238 13% 1,762,018 (1,461,780) -83% 302 PARK MAINTENANCE 1,008,792 1,008,792 19,876 2% 41,435 (21,559) -52% 303 LOCAL DRAINAGE 3,672,294 3,672,294 42,059 1% 348,467 (306,408) -88% 304 LOCAL DRAINAGE/NON AB1600 28,357 187,838 34,457 18% 92,791 (58,335) -63% 306 AGRICULTURE & OPEN SPACE PRESERVATION 10,461 10,461 123,096 1177% 399,457 (276,361) -69% 308 STREET CIP 7,777,340 7,777,340 851,524 11% 1,165,999 (314,476) -27% 309 TRAFFIC IMPACT 3,584,714 3,584,714 365,834 10% 1,741,079 (1,375,246) -79% 315 PUBLIC SAFETY FACILITIES IMPACT 2,217,137 2,217,137 647,340 29% 1,567,822 (920,481) -59% 346 PUBLIC FACILITIES NON-AB1600 26,226 26,226 20,317 77% 37,861 (17,544) -46% 347 PUBLIC FACILITIES IMPACT 994,483 994,483 54,133 5% 304,883 (250,751) -82% 348 LIBRARY 2,180,740 2,180,740 273,903 13% 1,242,884 (968,981) -78% 350 UNDERGROUNDING 47,258 47,258 19,032 40% 26,851 (7,819) -29% 360 COMMUNITY/REC IMPACT FUND 3,802,095 3,802,095 447,547 12% 2,040,164 (1,592,617) -78% 375 QUIMBY FEE 4,268,487 4,268,487 76,802 2% 1,230,471 (1,153,669) -94% TOTAL CAPITAL PROJECTS FUNDS 31,943,236 32,102,717 3,276,157 10% 12,002,183 (8,726,026) -73%

DEBT SERVICE FUNDS
420 CIVIC CENTER DEBT 302,376 302,376 101,144 33% 100,930 214 0% 441 POLICE FACILITY BOND 394,304 394,304 129,922 33% 129,493 429 0% TOTAL DEBT SERVICE FUNDS 696,680 696,680 231,066 33% 230,423 643 0%

City of Morgan Hill
Year to Date Revenues - Fiscal Year 2025-26
For the Month Ended October 31, 2025
33% of Year Complete

CURRENT INCR (DECR)
ADOPTED AMENDED YTD % PRIOR FROM PRIOR %

BUDGET BUDGET ACTUAL OF BUDGET YTD YTD CHANGE

ENTERPRISE FUNDS
640 WASTEWATER OPERATION
Sewer Service Fees 17,871,000 17,871,000 5,344,494 30% 3,846,496 1,497,998 39% Interest Income/Transfers 121,041 121,041 17,187 14% 32,421 (15,235) -47% Other Revenue/Current Charges 428,860 428,860 93,162 22% 87,052 6,110 7% 640 WASTEWATER OPERATION 18,420,901 18,420,901 5,454,843 30% 3,965,969 1,488,874 38% 641 WASTEWATER EXPANSION
Interest Income 164,788 164,788 241,953 147% 325,214 (83,261) -26% Development Impact Fee 30,415,728 30,415,728 1,023,160 3% 7,858,725 (6,835,565) -87% 641 WASTEWATER EXPANSION 30,580,516 30,580,516 1,265,112 4% 8,183,939 (6,918,827) -85% 642 WASTEWATER RATE STABILIZATION 93,037 93,037 35,458 38% 47,219 (11,760) -25% 643 WASTEWATER CAPITAL PROJECT 15,076,739 15,076,739 2,231,961 15% 2,482,849 (250,888) -10% TOTAL SEWER FUNDS 64,171,193 64,171,193 8,987,375 14% 14,679,976 (5,692,601) -39% 650 WATER OPERATION
Water Sales 21,385,800 21,385,800 6,238,351 29% 5,780,917 457,434 8% Meter Install & Service 110,000 110,000 8,889 8% 46,797 (37,908) -81% Transfers-In / Interest Income 911,184 911,184 277,028 30% 219,601 57,427 26% Other Revenue/Current Charges 1,044,838 1,044,838 335,167 32% 462,420 (127,254) -28% 650 WATER OPERATION 23,451,822 23,451,822 6,859,435 29% 6,509,736 349,699 5% 651 WATER EXPANSION
Interest Income/Other Revenue/Transfer 40,273 40,273 62,572 155% 67,601 (5,029) -7% Development Impact Fee 4,833,886 4,833,886 440,759 9% 2,359,538 (1,918,779) -81% 651 WATER EXPANSION 4,874,159 4,874,159 503,331 10% 2,427,139 (1,923,808) -79% 652 WATER RATE STABILIZATION 99,247 99,247 37,925 38% 51,183 (13,258) -26% 653 WATER CAPITAL PROJECT 7,809,380 7,809,380 3,454,914 44% 2,279,542 1,175,372 52% TOTAL WATER FUNDS 36,234,608 36,234,608 10,855,605 30% 11,267,600 (411,995) -4% TOTAL ENTERPRISE FUNDS 100,405,801 100,405,801 19,842,980 20% 25,947,576 (6,104,596) -24%

INTERNAL SERVICE FUNDS
730 INFORMATION SYSTEMS 3,038,971 3,038,971 1,011,638 33% 963,626 48,012 5% 740 BUILDING MAINTENANCE 1,270,189 1,270,189 427,171 34% 475,330 (48,159) -10% 741 BUILDING REPLACEMENT 1,049,288 2,299,288 360,353 16% 369,163 (8,810) -2% 745 CIP ADMINISTRATION 2,880,028 2,880,028 n/a - 634,017 (634,017) -100% 760 UNEMPLOYMENT INSURANCE 8,298 8,298 2,940 35% 4,175 (1,235) -30% 770 WORKERS COMPENSATION 1,211,610 1,211,610 155,701 13% 317,963 (162,262) -51% 790 EQUIPMENT REPLACEMENT 1,615,158 1,615,158 546,209 34% 621,963 (75,753) -12% 791EMPLOYEE BENEFITS 1,251,963 1,251,963 392,305 31% 383,657 8,648 2% 795 GENERAL LIABILITY INSURANCE 2,769,881 2,769,881 918,444 33% 837,414 81,029 10% TOTAL INTERNAL SERVICE FUNDS 15,095,386 16,345,386 3,814,761 23% 4,607,308 (792,548) -17% TOTAL FOR ALL FUNDS $ 220,289,468 $ 221,587,983 $ 41,683,015 19% $ 57,141,747 $ (15,458,733) -27%

City of Morgan Hill
Year to Date Expenses - Fiscal Year 2025-26
For the Month Ended October 31, 2025
33% of Year Complete

CURRENT

FUND MONTH PERCENT OF
NO. FUND/ACTIVITY ACTUAL AMENDED YTD OUTSTANDING TOTAL TOTAL TO PRIOR

EXPENSES BUDGET EXPENSES ENCUMBRANCE ALLOCATED BUDGET YTD 010 GENERAL FUND
I. ADMINISTRATION
CITY COUNCIL 119,049 $ 631,504 $ 343,358 $ 12,000 $ 355,358 $ 56% 169,080 $ .

CITY ATTORNEY 100,634 1,151,353 279,191 57,072 336,262 29% 296,051 CITY MANAGER 69,912 1,041,692 223,187 - 223,187 21% 153,415 HUMAN RESOURCES 97,055 1,032,289 324,761 - 324,761 31% 346,895

COUNCIL SVCS & RECORDS MGMT
Council Svcs & Records Mgmt 57,017 627,757 177,446 - 177,446 28% 166,875 Elections 3,882 38,516 11,969 - 11,969 31% 2,338
COUNCIL SVCS & RECORDS MGMT 60,899 666,273 189,415 - 189,415 28% 169,213 FINANCE 203,682 2,574,249 619,244 58,223 677,467 26% 588,356 TOTAL ADMINISTRATION 651,231 7,097,361 1,979,156 127,295 2,106,450 30% 1,723,008 II. COMMUNITY SERVICES
Membership Services & Rec. Programs 481,600 7,541,945 2,292,531 1,522,969 3,815,501 51% 2,384,931 Recreation Facility Rentals 131,070 1,451,514 413,200 67,056 480,256 33% 173,521 Innovative Transit - - - - - n/a 174,655
Community Services 85,090 883,254 277,920 87,271 365,190 41% 174,895 Park Maintenance 120,640 1,563,784 373,544 46,637 420,181 27% 321,276 Environmental Services 50,345 885,890 226,143 - 226,143 26% 182,086 Countywide Solid Waste Program 49,649 546,317 157,232 - 157,232 29% 144,572 Street Maintenance 314,775 3,600,422 1,003,732 1,003,732 - 28% 838,983 Downtown Maintenance 36,299 398,326 101,737 16,008 117,745 30% 72,367 PD Building Maintenance 52,337 729,167 187,028 57,108 244,136 33% 153,360 Cable Television 7,837 91,406 30,388 - 30,388 33% 29,944 COMMUNITY SERVICES 1,329,641 17,692,025 5,063,455 1,797,049 6,860,504 39% 4,650,590 CODE COMPLIANCE 44,920 420,943 137,395 - 137,395 33% 115,778 INFRASTRUCTURE PLANNING & CONGESTION MGMT 644,253 55,285 161,552 - 161,552 25% 120,949 ECONOMIC DEVELOPMENT PROGRAMS 105,373 1,418,834 320,796 2,904 323,699 23% 251,039 TOTAL COMMUNITY SERVICES 1,535,219 20,176,055 5,683,198 1,799,953 7,483,150 37% 5,138,356 III. PUBLIC SAFETY
POLICE
PD Administration 185,868 1,964,769 604,624 20,588 625,212 32% 543,683 Field Operations 1,194,797 14,237,974 4,134,077 189,307 4,323,384 30% 3,428,250 Support Services 243,439 2,766,134 910,233 - 910,233 33% 805,842 Emergency Services/Haz Mat 25,864 278,548 78,877 - 78,877 28% 71,857 Special Operations 499,427 4,405,650 1,432,761 1,432,761 - 33% 1,331,938 Dispatch Services 258,863 2,426,058 784,551 - 784,551 32% 679,725 POLICE 2,408,258 26,079,133 7,945,123 209,895 8,155,018 31% 6,861,297 FIRE 831,003 11,212,073 3,662,722 3,662,722 - 33% 3,526,559 TOTAL PUBLIC SAFETY 3,239,261 37,291,206 11,607,846 209,895 11,817,741 32% 10,387,856 IV. TRANSFERS
Other 104,923 1,418,558 419,692 - 419,692 30% 486,077
TOTAL TRANSFERS 104,923 1,418,558 419,692 419,692 - 30% 486,077 TOTAL GENERAL FUND 5,530,634 65,983,180 19,689,892 2,137,142 21,827,033 33% 17,735,297

City of Morgan Hill
Year to Date Expenses - Fiscal Year 2025-26
For the Month Ended October 31, 2025
33% of Year Complete

CURRENT

FUND MONTH PERCENT OF
NO. FUND/ACTIVITY ACTUAL AMENDED YTD OUTSTANDING TOTAL TOTAL TO PRIOR

EXPENSES BUDGET EXPENSES ENCUMBRANCE ALLOCATED BUDGET YTD

SPECIAL REVENUE FUNDS
202 STREET MAINTENANCE 463 857,492 227,028 - 227,028 26% 231,701 205 PUBLIC SAFETY/SUPP.LAW 115 101,380 460 - 460 0% 33,784 206 DEVELOPMENT SERVICES FUND
Planning 171,380 1,734,431 541,347 - 541,347 31% 475,914 Building 277,844 3,331,894 916,307 126,119 1,042,426 31% 777,063 Engineering 154,321 1,837,532 503,238 371,167 874,405 48% 445,174 206 DEVELOPMENT SERVICES FUND 603,544 6,903,857 1,960,892 497,286 2,458,178 36% 1,698,151 207 LONG RANGE PLANNING 87,481 2,201,195 398,696 406,782 805,478 37% 264,666 215/216 CDBG 8 90 30 - 30 33% 29
225 ASSET SEIZURE 70 840 280 - 280 33% 274
229 LIGHTING AND LANDSCAPE 27,823 221,603 57,357 7,968 65,325 29% 53,707 230 COMMUNITY FACILITIES DISTRICT 2,129 24,377 8,971 - 8,971 37% 7,906 232 ENVIRONMENTAL PROGRAMS 32,252 470,920 115,237 8,381 123,618 26% 119,355 234 MOBILE HOME PARK 81 970 323 - 323 33% 317
236 HOUSING MITIGATION 673,334 2,488,831 873,267 30,773 904,040 36% 404,804 240 EMPLOYEE ASSISTANCE 84 21,010 2,017 - 2,017 10% 3,831 246 COUNTYWIDE SOLID WASTE PROGRAM 254,336 1,927,635 395,326 551,505 946,831 49% 519,597 255 HOUSING SUCCESSOR AGENCY 112,873 1,375,331 508,505 324,250 832,755 61% 456,770 260 PUBLIC ART 536 6,430 2,143 - 2,143 33% 2,152
TOTAL SPECIAL REVENUE FUNDS 1,795,127 16,601,960 4,550,532 1,826,946 6,377,478 38% 3,797,044

CAPITAL PROJECT FUNDS
301 PARK DEVELOPMENT 16,158 4,134,937 265,486 1,096,664 1,362,150 33% 425,893 302 PARK MAINTENANCE 54,167 650,000 218,016 - 218,016 34% 218,257 303 LOCAL DRAINAGE 30,202 2,618,694 959,584 29,154 988,738 38% 12,332 304 LOCAL DRAIN. NON-AB1600 4,646 556,459 52,344 143,500 195,844 35% 30,329 306 AGRICULTURE & OPEN SPACE PRESERVATIO 128,770 10,731 42,923 - 42,923 33% 42,719 308 STREET CIP 1,772,849 7,569,224 1,912,532 321,777 2,234,309 30% 2,237,249 309 TRAFFIC IMPACT 63,035 4,050,898 188,817 204,577 393,394 10% 361,473 315 PUBLIC SAFETY FACILITIES IMPACT 23,252 4,651,282 191,372 1,023,683 1,215,055 26% 3,036,558 346 PUBLIC FAC.NON AB1600 50,427 291,774 175,840 55,772 231,612 79% 19,930 347 PUBLIC FACILITIES IMPACT 403,293 2,838,513 410,688 636,711 1,047,399 37% 352,531 348 LIBRARY IMPACT 17,957 215,486 71,829 - 71,829 33% 904,538 350 UNDERGROUNDING 105 1,050,456 420 - 420 0% 411
360 COMM/REC CENTER IMPACT 38,279 4,438,720 93,156 104,671 197,828 4% 230,204 375 QUIMBY FEE 1,082,201 11,203,793 1,633,943 3,051,472 4,685,415 42% 1,042,818 TOTAL CAPITAL PROJECTS FUNDS 3,567,301 44,399,006 6,216,950 6,667,982 12,884,932 29% 8,915,243

DEBT SERVICE FUNDS
420 CIVIC CENTER DEBT 289 294,598 1,157 - 1,157 0% 1,134 441 POLICE FACILITY BOND DEBT 383 389,293 1,533 - 1,533 0% 1,502 TOTAL DEBT SERVICE FUNDS 673 683,891 2,690 - 2,690 0% 2,636

City of Morgan Hill
Year to Date Expenses - Fiscal Year 2025-26
For the Month Ended October 31, 2025
33% of Year Complete

CURRENT

FUND MONTH PERCENT OF
NO. FUND/ACTIVITY ACTUAL AMENDED YTD OUTSTANDING TOTAL TOTAL TO PRIOR

EXPENSES BUDGET EXPENSES ENCUMBRANCE ALLOCATED BUDGET YTD

ENTERPRISE FUNDS
SEWER
640 WASTEWATER OPERATIONS 1,493,687 18,456,050 5,731,208 254,097 5,985,305 32% 3,603,436 641 WASTEWATER CAPITAL EXPANSION 343,212 49,012,211 640,537 292,987 933,524 2% 2,085,182 642 WASTEWATER RATE STABILIZATION 168 2,010 670 - 670 33% 655 643 WASTEWATER CAPITAL PROJECTS 356,096 33,236,798 1,366,930 4,812,447 6,179,378 19% 1,625,033 TOTAL SEWER FUND(S) 2,193,163 100,707,069 7,739,346 5,359,531 13,098,876 13% 7,314,306 WATER
Water Operations 2,195,053 21,768,518 6,397,258 315,947 6,713,205 31% 5,533,333 Utility Billing 160,306 1,547,081 452,424 - 452,424 29% 362,390 Water Conservation 28,083 451,335 87,786 73,087 160,873 36% 112,939 650 WATER OPERATIONS 2,383,442 23,766,933 6,937,468 389,034 7,326,501 31% 6,008,662 651 WATER CAPITAL EXPANSION 173,400 11,503,055 510,293 1,983,448 2,493,742 22% 247,649 652 WATER RATE STABILIZATION 125 1,500 500 - 500 33% 491 653 WATER-CAPITAL PROJECTS 937,959 28,017,341 1,637,858 6,404,192 8,042,051 29% 532,122 TOTAL WATER FUND(S) 3,494,925 63,288,829 9,086,119 8,776,674 17,862,794 28% 6,788,924 TOTAL ENTERPRISE FUNDS 5,688,088 163,995,898 16,825,465 14,136,205 30,961,670 19% 14,103,229

INTERNAL SERVICE FUNDS
730 INFORMATION SYSTEMS 212,762 3,072,099 921,111 20,475 941,585 31% 823,472 740 BUILDING MAINTENANCE 102,941 1,332,278 336,713 12,557 349,271 26% 413,703 741 BUILDING REPLACEMENT 455,866 3,696,301 604,605 260,853 865,458 23% 593,386 745 CIP ADMINISTRATION 270,200 2,746,811 867,019 - 867,019 32% 697,570 760 UNEMPLOYMENT - 15,000 2,937 - 2,937 20% 3,922
770 WORKERS COMPENSATION 30,234 1,007,970 742,251 - 742,251 74% 675,846 790 EQUIPMENT REPLACEMENT 10,147 599,178 266,798 527,330 794,128 133% 717,328 791 EMPLOYEE BENEFITS FUND 20,317 1,000,000 156,227 - 156,227 16% 132,783 795 GEN. LIABILITY INSURANCE 24,590 2,623,909 2,413,568 - 2,413,568 92% 2,043,472 TOTAL INTERNAL SERVICE FUNDS 1,127,057 16,093,546 6,311,229 821,215 7,132,444 44% 6,101,481 REPORT TOTAL $ 17,708,879 $ 307,757,481 $ 53,596,758 $ 25,589,489 $ 79,186,247 26% 50,654,929 $

City of Morgan Hill
Fund Activity Summary - Fiscal Year 2024-25
For the Month Ended October 31, 2025
33% of Year Complete
Beginning Year to-Date
Fund Fund Balance YTD % of YTD % of Deficit or
No. Fund Description 07-01-25 Actual Budget Actual Budget Carryover Reserved1 Unreserved 010 GENERAL FUND 27,063,982 $ 9,886,513 $ 17% 19,689,892 $ 30% (9,803,379) $ 2,137,142 $ 15,123,461 $ TOTAL GENERAL FUND $ 27,063,982 $ 9,886,513 17% 19,689,892 $ 30% (9,803,379) $ $ 2,137,142 $ 15,123,461 202 STREET MAINTENANCE 152,931 $ 225,175 26% 227,028 $ 28% $ (1,854) $ - $ 151,077 205 PUBLIC SAFETY/SUPPL. LAW 523,410 18,082 16% 27% 17,622 460 541,032 - 206 DEVELOPMENT SERVICES (987,534) 2,373,048 40% 1,960,892 28% 412,156 497,286 (1,072,664) 207 LONG RANGE PLANNING 1,367,092 473,720 57% 398,696 18% 75,025 406,782 1,035,334 215 / 216 CDBG 34,690 76% 755 33% 30 725 - 35,415
225 ASSET SEIZURE 107,136 1,140 70% 33% 280 860 107,996 - 229 LIGHTING AND LANDSCAPE 204,684 1,987 1% 57,357 26% (55,370) 7,968 141,346 230 COMMUNITY FACILITIES DISTRICT 169,007 1,751 6% 8,971 37% (7,220) 161,787 - 232 ENVIRONMENTAL PROGRAMS 576,223 164,330 31% 115,237 24% 49,093 8,381 616,936 234 MOBILE HOME PK RENT STAB. 87,242 4,458 182% 33% 323 4,135 - 91,377 235 SENIOR HOUSING 253,103 n/a - n/a - - 253,103 -
236 HOUSING MITIGATION 10,243,057 761,621 22% 873,267 35% (111,646) 30,773 10,100,638 240 EMPLOYEE ASSISTANCE 63,420 3,048 634% 2,017 10% 1,031 - 64,451 246 COUNTYWIDE SOLID WASTE 324,737 556,164 32% 395,326 21% 160,839 551,505 (65,930) 255 HOUSING SUCCESSOR AGENCY 3,856,660 45,865 11% 508,505 37% (462,640) 324,250 3,069,770 260 PUBLIC ART 37,920 45% 395 2,143 33% (1,749) - 36,172 TOTAL SPECIAL REVENUE FUNDS $ 17,013,778 $ 4,631,539 33% 4,550,532 $ 27% 81,007 $ $ 1,826,946 $ 15,267,839 301 PARK DEV. IMPACT FUND $ 3,333,114 $ 300,238 13% 265,486 $ 6% 34,752 $ $ 1,096,664 $ 2,271,203 302 PARK MAINTENANCE 1,896,529 19,876 2% 218,016 34% (198,141) 1,698,388 - 303 LOCAL DRAINAGE 10,517,077 42,059 1% 959,584 37% (917,526) 29,154 9,570,398 304 LOCAL DRAINAGE/NON-AB1600 1,342,166 34,457 18% 52,344 9% (17,887) 143,500 1,180,779 306 AG. AND OPEN SPACE PRESERVATION 2,344,054 123,096 1177% 42,923 33% 80,173 2,424,227 - 308 STREET CIP 4,608,966 851,524 11% 1,912,532 25% (1,061,008) 321,777 3,226,180 309 TRAFFIC IMPACT FUND 2,855,919 365,834 10% 188,817 5% 177,017 204,577 2,828,359 315 PUBLIC SAFETY FACILITIES IMPACT (6,894,240) 647,340 29% 191,372 4% 455,969 1,023,683 (7,461,955) 346 PUBLIC FACILITIES NON-AB1600 1,921,852 20,317 77% 175,840 60% (155,523) 55,772 1,710,557 347 PUBLIC FACILITIES IMPACT FUND 1,250,914 54,133 5% 410,688 14% (356,555) 636,711 257,648 348 LIBRARY IMPACT FUND 3,540,033 273,903 13% 71,829 33% 202,074 3,742,107 - 350 UNDERGROUNDING 1,768,756 19,032 40% 420 0% 18,612 1,787,368 - 360 COMM/REC CTR IMPACT FUND 4,522,800 447,547 12% 93,156 2% 354,391 104,671 4,772,519 375 QUIMBY FEE 6,800,701 76,802 2% 1,633,943 15% (1,557,142) 3,051,472 2,192,088 TOTAL CAPITAL PROJECT FUNDS $ 39,808,641 $ 3,276,157 10% 6,216,950 $ 14% (2,940,793) $ $ 6,667,982 $ 30,199,866 420 CIVIC CENTER DEBT $ 192,703 $ 101,144 33% $ 1,157 0% 99,987 $ $ 257,563 $ 35,127 441 POLICE FACILITY BOND DEBT 162,288 129,922 33% 1,533 0% 128,389 327,807 (37,130) TOTAL DEBT SERVICE FUNDS $ 354,991 $ 231,066 33% $ 2,690 0% 228,376 $ $ 585,369 $ (2,003) 640 WASTEWATER OPERATIONS $ 3,158,106 $ 5,454,843 30% 5,731,208 $ 31% (276,365) $ 254,097 2,627,644 641 WASTEWATER IMPACT FUND* 22,082,658 1,265,112 4% 640,537 1% 624,575 292,987 22,414,247 642 WASTEWATER RATE STABILIZATION 3,295,308 35,458 38% 33% 34,788 670 3,330,096 - 643 WASTEWATER CAPITAL PROJECTS 23,945,613 2,231,961 15% 1,366,930 4% 865,031 4,812,447 19,998,196 650 WATER OPERATIONS 4,429,715 6,859,435 29% 6,937,468 29% (78,033) 389,034 3,962,648 651 WATER IMPACT FUND* 5,747,541 503,331 10% 510,293 4% (6,963) 1,983,448 3,757,130 652 WATER RATE STABILIZATION 3,524,499 37,925 38% 33% 37,425 500 3,561,924 - 653 WATER -CAPITAL PROJECT 22,586,031 3,454,914 44% 1,637,858 6% 1,817,056 6,404,192 17,998,895 TOTAL ENTERPRISE FUNDS $ 88,769,471 $ 19,842,980 20% 16,825,465 $ 10% 3,017,515 $ $ 14,136,205 $ 77,650,781 730 INFORMATION SERVICES $ 619,218 $ 1,011,638 33% 921,111 $ 30% 90,527 $ $ 20,475 $ 689,270 740 BUILDING MAINTENANCE 346,643 427,171 34% 336,713 25% 90,458 12,557 424,543 741 BUILDING REPLACEMENT 5,024,498 360,353 16% 604,605 16% (244,252) 260,853 4,519,393 745 CIP ENGINEERING 7,515 n/a 867,019 - 32% (867,019) (859,504) - 760 UNEMPLOYMENT 285,588 2,940 35% 2,937 20% 3 285,591 - 770 WORKERS COMPENSATION 2,338,745 155,701 13% 742,251 74% (586,550) 30,000 1,722,195 790 EQUIPMENT REPLACEMENT 10,172,190 546,209 34% 266,798 45% 279,412 527,330 9,924,272 791 EMPLOYEE BENEFITS FUNDS 346,566 392,305 31% 156,227 16% 236,077 582,643 - 795 GEN. LIABILITY INSURANCE 1,149,474 918,444 33% 2,413,568 92% (1,495,125) (345,651) - TOTAL INTERNAL SERVICE FUNDS $ 20,290,437 $ 3,814,761 23% 6,311,229 $ 39% (2,496,469) $ $ 851,215 $ 16,942,753 Revenues Expenses Preliminary Ending Fund Balance

City of Morgan Hill
Fund Activity Summary - Fiscal Year 2024-25
For the Month Ended October 31, 2025
33% of Year Complete
Beginning Year to-Date
Fund Fund Balance YTD % of YTD % of Deficit or
No. Fund Description 07-01-25 Actual Budget Actual Budget Carryover Reserved1 Unreserved Revenues Expenses Preliminary Ending Fund Balance

SUMMARY BY FUND TYPE
GENERAL FUND GROUP 27,063,982 $ 9,886,513 $ 17% 19,689,892 $ 30% (9,803,379) $ 2,137,142 $ 15,123,461 $ SPECIAL REVENUE GROUP 17,013,778 4,631,539 33% 4,550,532 27% 81,007 1,826,946 15,267,839 DEBT SERVICE GROUP 354,991 231,066 33% 2,690 0% 228,376 585,369 (2,003) CAPITAL PROJECTS GROUP 39,808,641 3,276,157 10% 6,216,950 14% (2,940,793) 6,667,982 30,199,866 ENTERPRISE GROUP 88,769,471 19,842,980 20% 16,825,465 10% 3,017,515 14,136,205 77,650,781 INTERNAL SERVICE GROUP 20,290,437 3,814,761 23% 6,311,229 39% (2,496,469) 851,215 16,942,753 TOTAL ALL GROUPS 193,301,300 $ 41,683,015 $ 19% 53,596,758 $ 17% (11,913,744) $ 26,204,858 $ 155,182,698 $ For Enterprise Funds: Unrestricted fund balance = Fund balance net of fixed assets and long-term liabilities. *Unreserved fund balance includes bond proceeds reserved for projects listed in bond documents. 1 Amount restricted for encumbrances, fixed asset replacement, long-term receivables, and bond reserves.

11 CITY COUNCIL STAFF REPORT
MEETING DATE: December 17, 2025
PREPARED BY:

Matt Mahood, Economic Development Director
APPROVED BY: City Manager

REVIEW AND APPROVE DESIGN OF A PROPOSED DOWNTOWN

GATEWAY ARCH BY THE DOWNTOWN MORGAN HILL

IMPROVEMENT DISTRICT (DMHID)

RECOMMENDATION(S)
Review and approve the design of a Downtown Gateway Arch as proposed by the Downtown Morgan Hill Improvement District.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Maintaining and Enhancing Infrastructure
Preserving our Community History
2024-2025 Strategic Priorities
Economic Development and Tourism
REPORT NARRATIVE:

Downtown Entryway Signage Background
Downtown entryway features have been included in several Downtown plans over the years.

In 1980, a Downtown Design Study conducted by CHNMB Associates to address issues of Downtown Revitalization, determined that gateway signs on Monterey Road were needed to signify entry in a real and symbolic sense. That study led to the 1981 Morgan Hill Downtown Plan, which established a series of recommendations for the Downtown area, including an entryway design of a collection of three historic windmills in the median at Monterey Rd at Dunne Avenue and Main Avenue. Not all elements of the Plan were implemented in the 1984-1994 design development and implementation phase, including the creation of distinctive Downtown entry features on Monterey Road, but all remaining elements were included in the Downtown Design Plan Update.

In 2003, a Task Force was commissioned to create an update to the 1981 Plan, resulting in the creation of the 2003 Downtown Morgan Hill Plan. In this Plan, signage was included as a key component of the Vision and directional signage at the ends of Monterey Road were referenced to help visitors find their way Downtown. Special identity signs marking the Downtown entries would have a special character and assist in announcing to motorists they are entering a special pedestrian priority zone. Identity signs were proposed to be placed at the Monterey Road intersection at Dunne Avenue and Main Avenue, to create a visual and physical linkage to Downtown. Public signage improvements were listed as a priority under the public improvement category.

In 2009, the 2003 Plan was updated, and the Downtown Specific Plan was adopted. One of the

11 Urban Design Goals in the Specific Plan lists "creating visual and physical linkages to Downtown with landscaping, bike paths, and entry area features." Plan SG-I1 of the Downtown Specific Plan states, "Encourage entry features and directional signs." This section identifies the intersections at Monterey Road and Main Avenue, Third Street, and Dunne Avenue as the preferred locations for entry features." The former City of Morgan Hill Redevelopment Agency (RDA) planned to fund a variety of projects outlined in the Downtown Specific Plan including the design and installation of Downtown entry features.

Downtown Entryway Design
In 2006, the former RDA retained graphic design company, Graphic Solutions, to work with a Citizen's Committee to develop design components for Downtown entry features and directional signs, as well as a comprehensive City-wide directional sign program. As part of the program, three entry features were proposed at: 1) Monterey Road at Dunne Avenue, 2) Monterey Road at Main Avenue, and 3) Third Street at Depot Street. On July 18, 2007, the City Council approved the design concepts for the Downtown entry features and directional sign program and directed staff to move forward with design development and construction documents.

Directional signage was constructed and implemented in accordance with the sign program and remains in place today. Construction of the entryway features was delayed to accommodate public works improvements at the Monterey Road and Main Avenue intersection, including the addition of bulb-outs. By the time that work was completed, the former RDA had been dissolved and the funding mechanism for the three planned entry features was no longer available.

Downtown Morgan Hill Improvement District
The Downtown Property-Based Improvement District (PBID) was formed in 2023 through the approval of downtown property owners and the Morgan Hill City Council. The PBID establishes a special assessment district in which collected assessments are used exclusively for services and improvements that directly benefit the parcels within its boundaries. Management and oversight of the PBID are provided by the Downtown Morgan Hill Improvement District (DMHID) Board of Directors, which serves as the state-required Owners’ Association responsible for budgeting, program administration, and project direction in accordance with the adopted Management District Plan.

A year ago, at the Downtown Morgan Hill Improvement District (DMHID) Board of Directors’ retreat, several projects were advanced for funding consideration. Among them, the design and installation of one or two Downtown gateway arches was proposed and received strong Board support. Since that time, the organization has researched gateway arch designs and consulted with other cities that have completed similar projects. The concept was also presented to several community organizations for feedback and consideration. Following multiple design iterations, the DMHID Board of Directors approved a final design by E2 Architects on November 3, 2025. To ensure the project remains reflective of Morgan Hill, the DMHID has contracted local firm Kent Construction to serve as Project Manager.

As proposed, the Downtown Morgan Hill Gateway Arch is intended to be timeless and representative of the City of Morgan Hill, incorporating the immediately recognizable silhouette of El Toro Mountain without specifically highlighting the past, present, or future. The arch will be located at the intersection of Monterey Road and Main Avenue. The El Toro element will be double-sided and constructed of laser-cut Corten steel. The front of the mountain will display “Downtown Morgan Hill” in metal channel letters, which will be backlit for nighttime visibility.

11 The remainder of the structure will consist of a bronze frame, mesh columns infilled with stone and accented with up-lighting, and a base designed to accommodate donor tiles or bricks. The arch footings will be installed within the sidewalk areas in front of Wells Fargo Bank and directly opposite, in front of Chase Bank. These footings will be placed in and around the existing planter boxes, which will be removed. The arch height will be engineered to avoid interference with traffic signals, accommodate semi-truck clearance, and maintain clear driver sight lines.

The anticipated cost of the project is $500,000. The DMHID Board has committed to funding $250,000, with the remaining balance to be raised through a focused Community fundraising effort.

Ongoing maintenance of the arch is expected to be minimal, as the selected materials are durable and weather-resistant, and the electrical components have been designed for ease of access and replacement as needed. The construction and implementation timeline will be determined by the pace of fundraising, with a target completion date before Winter 2026.

The City Engineer and Public Services Director have reviewed and provided feedback on the proposed project. They will continue to work with the DMHID to ensure that all engineering and public works requirements are met prior to final design and construction.

Downtown PBID Funding Allocations
When the Downtown PBID was formed, its Management District Plan (MDP) established the specific categories where assessment funds may be used: Clean and Safe Programs, Capital Improvements and Art Installations, and Marketing and Special Events. Based on the projected budget and identified needs, annual allocations were set for each category. Capital Improvements and Art Installations account for 15% of the annual budget, or approximately $37,403 per year. The MDP also allows funds in this category to accumulate over time to support larger-scale projects. Because no projects have yet been undertaken in this category, the first-year allocation rolled over, resulting in a current balance of $74,806.

Additionally, the MDP authorizes the Board to adjust budget allocations by up to fifteen percent (15%) of the total budget each year. For example, up to 15% of Clean and Safe funds may be reallocated to Capital Improvements and Art or Marketing and Special Events. Beyond assessment revenue, the PBID must also generate non-assessment funds such as event revenue, donations, grants, and sponsorship, which may be allocated across categories at the Board’s discretion. The next installment of assessment funds will be received in Spring 2026, adding to each category proportionally.

Using a phased funding approach—and given current reserves, annual allocations, the ability to reallocate within MDP parameters, and anticipated non-assessment revenue—the Downtown MHPBID is well positioned to commit $250,000 toward the design, construction, and implementation of the Downtown Gateway Arch Project.

COMMUNITY ENGAGEMENT:

Inform
The Downtown Gateway Arch concept and proposed designs have been presented to partner and community organizations, including the Rotary Club of Morgan Hill, Kiwanis Club, Morgan Hill Downtown Association, Visit Morgan Hill, and the Morgan Hill Chamber of Commerce.

ALTERNATIVE ACTIONS:

Not applicable

11 PRIOR CITY COUNCIL AND COMMISSION ACTIONS:

At its December 2, 2025 meeting, the Library, Culture and Arts Commission recommended approval of the project by the City Council.

FISCAL AND RESOURCE IMPACT:

The DMHID is not requesting public funding at this time. Fiscal impact is limited to the staff time required to review and coordinate the project construction.

CEQA (California Environmental Quality Act):

This project is exempt from CEQA review under CEQA Guideline 15601(b)(3). As proposed, the activity will not have an impact on the environment.

DOWNTOWN MORGAN HILL

IMPROVEMENT DISTRICT (DMHID)

GATEWAY ARCH PROJECT
City of Morgan Hill
City Council Meeting
December 17, 2025

PROPERTY AND BUSINESS

IMPROVEMENT DISTRICT OVERVIEW
• The District Boundaries: north of Dunne, east
of Del Monte, south of Main, and west of
Butterfield
• Assessment Period: January 1, 2024, through
December 31, 2028
• Assessment Rate: Based on parcel type, parcel
square footage, and in some cases, linear
frontage
• Annual Budget: Approximately $284,640

OWNER’S ASSOCIATION
• Downtown Morgan Hill Improvement
District (DMHID) is a 501c6 not-for-profit
organization
• Board of Directors
• No less than 5 no more than 9
• (3) must be property owners or approved
managers paying the assessment
• (2) must be City of Morgan Hill
representatives
• 60% of Funds are dedicated to “Clean and
Safe” initiatives

GATEWAY ARCH PROJECT
The Gateway Arch will serve as a bold, iconic entryway
welcoming residents and visitors into the City’s historic district.

A collaborative effort between DMHID, Kent Construction, and E2 Architects, the Arch represents a long-term investment in downtown identity and community pride.

LOCATION
Chase Bank
Wells Fargo
El Toro Brewery

GATEWAY ARCH FUNDING PLAN
January- November 2026
Kent Construction
E2 Architects
Terra Amico Farms
Capital Campaign
$250,000
DMHID Funds
$250,000
Project Cost
$500,000
Community Bricks
Business/Individual
Donors
Community Partners

QUESTIONS
Gabby Crescini
[email protected]
Business Engagement and Events Manager
Downtown Morgan Hill Improvement District (DMHID)

12 CITY COUNCIL STAFF REPORT
MEETING DATE: December 17, 2025
PREPARED BY:

Shane Palsgrove, Police Chief
APPROVED BY: City Manager

RECEIVE REPORT REGARDING MORGAN HILL POLICE

DEPARTMENT'S CALIFORNIA COMMISSION ON PEACE OFFICER

STANDARDS AND TRAINING MANAGEMENT STUDY

RECOMMENDATION(S)
Accept the report of Morgan Hill Police Department's California Commission on Peace Officer Standards and Training Management Study.

COUNCIL PRIORITIES, GOALS & STRATEGIES
City Council Ongoing Priorities
Enhancing Public Safety
Maintaining and Enhancing Infrastructure
Supporting our Youth, Seniors, and Entire Community
Fostering a Positive Organizational Culture
Preserving and Cultivating Public Trust
2024-2025 Strategic Priorities
Fiscal Sustainability
Community Engagement
Healthy Community
Guiding Documents
Public Safety Master Plan
REPORT NARRATIVE:

Purpose
To provide the City Council with the findings and recommendations of the California Commission on Peace Officer Standards and Training (POST) Management Study for the Morgan Hill Police Department (MHPD).

Background
In April 2025, MHPD commenced its collaboration with POST to conduct a comprehensive management and staffing study. The goal of the study is to understand organizational behavior and to provide a roadmap that enhances efficiency while effectively managing an agency's resources. The assessment examined departmental

12 structure, staffing, workload, training, and resource allocation. POST’s findings confirm that MHPD operates with a strong culture of professionalism and community service while facing structural and staffing challenges that may limit its ability to sustain operational efficiency as the City continues to grow.

Additionally, it is essential to understand that recommendations provided by POST are recommendations only and should be evaluated in the context of each agency's unique cultural, political, historical, and financial environment. Agencies are encouraged to use these recommendations as a foundation for dialogue among leadership, staff, elected officials, and community stakeholders, and where appropriate, as a starting point for future policy development to better meet the evolving needs of the communities they serve.

Findings of the POST Staffing Study
The 2025 POST Management Study validated the need for structural modernization and staffing expansion within MHPD. There were 23 recommendations in the study: 11 have budgetary, staffing, or organizational implications, and 12 are operational or administrative improvements. The 12 recommendations will be reviewed and assessed for potential implementation. The 11 key recommendations listed below are the ones that impact service delivery, officer safety, and future resource planning. As the City considers these recommendations, it will also need to evaluate the resources required to fund additional staffing in light of the General Fund structural deficit, ensuring that any future commitments are financially sustainable.

Organizational Structure:
• Eliminate the Corporal positions to streamline supervision. • Create Lieutenant positions to bridge management gaps between Captains and Sergeants.

Staff agrees with the recommendations. However, there would be challenges to overcome, such as salary compaction, and fewer supervisors to lead teams during absences.

Patrol Operations:
• Increase minimum staffing to four officers per shift for officer safety and effective response.
• Implement a swing shift (12:00 p.m. – 10:00 p.m., Tuesday–Friday) to match peak call demand.
• Update beat boundaries to balance workload and reflect population growth. • Consider creating a special event planning and coordination position.

Staff agreed with the recommendations. However, they must be implemented when